The consequences of the Corona crisis have also hit the traditional retailer Jeans by Kaltenbach in Munich hard. As the company has now announced, Jeans Kaltenbach GmbH will reposition itself on the path to self-administration.
According to the German Insolvency Code, self-administration is the possibility for a debtor to manage and dispose of the insolvency assets itself under the supervision of a trustee. The self-administering debtor thus becomes an insolvency administrator in its own right.
Accordingly, the competent local court in Munich has granted the application of the Jeans Kaltenbach GmbH management and ordered provisional self-administration. As a result of this court order the management of the company will remain in the hands of the management even during the restructuring process.
"The consequences of the Corona crisis for the inner city retail trade have also affected us badly,” says Norbert Kaltenbach, managing director of the company, which was founded in 1953. “Our goal now is to restructure Jeans by Kaltenbach in a sustainable manner and to continue our tradition as an attractive supplier of jeans expertise in the future."
Kaltenbach will be supported by Munich-based restructuring expert Thomas Klöckner and his team from the law firm LECON Restrukturierung with immediate effect. For this purpose, Klöckner is moving to the management of the company.
"Self-management is our best way to reduce the impact to overcome the Corona crisis and ensure the long-term survival of Jeans by Kaltenbach in the interest of all parties involved," explains Klöckner. In return the company will also discuss possibilities of an investor solution to find one or more interested parties who would be willing to provide funds for the future of the company.
In addition, lawyer Dr. Matthias Hofmann from the law firm Pohlmann Hofmann will from now on monitor and support the management in the restructuring process as a court-appointed provisional administrator to safeguard the interests of creditors.
Meanwhile, business operations in both branches will be continued. "Our clients can continue to rely on our personal service and our quality,” says Kaltenbach.
Management informed the 35 employees about the current situation and the further procedures in a general meeting. Instead of their wages and salaries, they will receive insolvency money from the Federal Employment Agency for three months.