Galeria's Rescuer in Hot Water: Aachener's Insolvency and Göbel's Absence
Fashion chain Aachener, under new management since last week, has stumbled upon a legal quagmire. Its founder, Friedrich-Wilhelm Göbel, is a fugitive, evading an arrest warrant for financial misdeeds, while the company itself teeters on the brink of insolvency.
Oliver Nobel took the helm as Managing Director, only to deliver grim news to over 360 employees—the Aachener fashion chain is financially strapped. According to a report from Handelsblatt, the company may struggle to meet its financial obligations in full. Göbel, currently on the run, had previously announced plans to expand Aachener by taking over up to 25 Galeria stores, but that seems unlikely now.
There's uncertainty regarding seven of the leased locations acquired from Galeria. Meanwhile, the company's eight existing stores will continue operations during insolvency. The insolvency proceedings have led to a state of limbo for these new locations.
Christoph Schulte-Kaubrügger, appointed as the provisional insolvency administrator, promises to utilize insolvency substitute benefits to pay salaries and wages up to January, indicating hope for a company turnaround. Schulte-Kaubrügger sees possibilities for restructuring and the continuation of the business.
Göbel's Financial Missteps and Galeria Stores Takeover
Göbel faces insolvency-related allegations for providing false financial statements in 2020. He's been hiding since November, when he was supposed to appear in court. Despite these charges, he had intentions to expand Aachener through taking over up to 25 Galeria stores.
Of the leased locations, those in Coburg, Cottbus, Frankfurt, Nuremberg, Dortmund, Saarbrücken, and Leverkusen received rental agreements, but none have opened yet. The city of Cottbus has already terminated their rental agreement, and the near-term prospects of opening remain in question.
Insolvency in the Fashion Industry
The struggles of Aachener are not isolated incidents in the fashion industry. For instance, Marelli Corporation, formerly known as Calsonic Kansei, faced severe financial difficulties in 2022, necessitating a Turnaround ADR due to 1 trillion yen in liabilities. The company ultimately underwent simplified civil rehabilitation proceedings.[1]
Leigh Fibers also underwent restructuring, ceasing operations at a nonwovens line while consolidating in Spartanburg, with a focus on engineered fiber business, global trading, and sustainability efforts.[4]
Other cases, such as PureCycle Technologies and Drake Extrusion's production partnership for continuous filament yarns using recycled materials, or Honeywell's planned split into three independent entities, don't directly pertain to the Aachener's current predicament.[4,5]
In conclusion, Aachener's founder, Friedrich-Wilhelm Göbel, faces financial misconduct charges and is evading an arrest warrant. Amidst Göbel’s scandal, the Aachener fashion chain itself is grappling with insolvency, leaving doubt about plans to take over Galeria Karstadt Kaufhof stores.
