MARC O’POLO AG PRESS RELEASE ON THE CURRENT SITUATION OF THE FASHION INDUSTRY AND RETAIL IN GERMANY

Stephanskirchen 17. March 2020. Medium-sized fashion retailers in Germany need direct and uncomplicated state support

The spread of the coronavirus is changing public life worldwide. The business viability of the fashion trade in Germany is massively threatened by the current restrictions on public life. Approximately 5,000 medium-sized companies and two million employees* are affected. The small and medium-sized trade now needs quick and effective help from politics in order to remain viable.

“The business model of the fashion trade has come to a standstill in the current situation. The Federal Government must very quickly bring the measures announced to companies in need. This is not a question of weeks, but often a question of days,” says Dieter Holzer, CEO of MARC O’POLO AG.

“We support our trading partners with our capabilities. The suspension of the insolvency law initiated by the government and the short-time working regulations are important steps. At the same time, suitable tools to relieve the entire trade, industry and supply chains must now take effect very quickly,” Holzer adds.

The following measures are necessary:

• Liquidity support via a special fund for the medium-sized fashion trade.

• Federal guarantees for the fashion trade for goods deliveries to secure the supply chains

“The big challenge will be the time factor. When will the funds reach the fashion trade and department stores? It would be appropriate to relieve the burden on KfW (the state-owned development bank) and pass on the awarding rights to banks or associations,” Holzer continues. “Germany has a great retail landscape with highly attractive city centres, and we must now maintain and secure this.”