WITHOUT IMMEDIATE STATE SUPPORT, MEDIUM-SIZED FASHION RETAILERS AND THE TEXTILE INDUSTRY ARE MASSIVELY THREATENED. CITY CENTRES FACE A HIGH LOSS OF ATTRACTIVENESS.
25. March 2020. The current lock-down of the German fashion trade massively threatens the existence of trade and industry.
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Joint press release of
Betty Barclay Group, GF Robert Küper
Bogner GmbH, GF Heinz Hackl
Brax GmbH, GF Stefan Brandmann
CBR Group, GF Jim Nowak
Falke GmbH, Franz-Peter Falke, Paul Falke
Fuchs & Schmitt, GF Andrea Krumme
KATAG AG, GF Daniel Terberger
Marc Cain GmbH, GF Frank Rheinboldt
MARC O’POLO AG, CEO Dieter Holzer
Mey GmbH, GF Matthias Mey
Olymp/Bezner GmbH, GF Mark Bezner
Opus GmbH, GF Stefan Leewe
S.Oliver Group, GF Claus Dietrich Lahrs
on the threat to the German retail trade, the German textile industry and German city centres
Many thousands of companies and thousands of employees are affected. Trade and industry are pushing for quick help from Berlin.
The government’s announced support through KfW loans will not reach many companies or will reach them too late.
“Even with the KfW loans, a residual risk of 10% remains with the banks. Due to the sheer volume, but also due to the risk profile of the trade, the banks are unlikely to be in a position to confirm all necessary approvals in a timely manner. At the same time, industry and trade are suffering from the total loss of an entire spring/summer season. That we need a solution for the continued existence of the retail trade and industry is the unanimous opinion of the signatories.”
“The specialist retail trade with its top dogs in Germany makes a great contribution to the inner cities and social life in the cities, and is often an important sponsor of local club life. We need a rescue umbrella that supports the retailers’ liquidity.”
Our proposal:
The government provides the top 30 textile industrial companies with a liquidity fund of EUR 850 million. The industry will use the resulting liquidity to provide the specialist retail trade with all fall/winter deliveries (July-November), with a 180-day value date. The industry assumes 10% of the liability risk. The administration, control and repatriation is carried out by an independent auditing firm (EY, PWC or similar). With this state aid, the flow of goods is secured and liquidity remains in trading for 180 days. The fund should then be dissolved and returned accordingly.
With this measure, specialist retailers and industry can return to normal. The top 30 in the industry account for approximately 60% of sales in the German specialist retail trade. The industry alone cannot cope with this task due to the volume.
The signatories ask the government to examine the proposal quickly and without bureaucracy. Extraordinary times require extraordinary measures.