Crisis Deepens in Hammer Raumstylisten Insolvency Proceedings
Hammer Raumstylisten to Launch Clearance Sales as Investor Search Fails
The situation is coming to a head in the insolvency proceedings of Hammer Raumstylisten GmbH. Provisional insolvency administrator Stefan Meyer of PLUTA Rechtsanwalts GmbH announced on Tuesday that no investor solution has yet been found to preserve the company as a specialty retail concept. To secure liquidity, the remaining 41 stores will begin clearance sales on April 1.
Despite tireless efforts by the entire Hammer team and all parties involved in the proceedings, no viable solution has emerged from the investor process. While negotiations with the two remaining potential buyers are still ongoing, they have not progressed as desired—either in substance or timing. The goal remains to transfer the business as a Hammer specialty retail operation with as many locations as possible, though the prospects of success are currently assessed as low. Nevertheless, all parties continue to work toward this objective with undiminished effort. Given these developments, the provisional insolvency administrator, in close coordination with the creditors' committee, has decided that the 41 stores still open at the end of the month will also begin clearance sales starting April 1.
Drastic Measures Were Unavoidable
Only through these steps—significantly reducing the number of stores open from April onward and launching clearance sales—can payment capacity be maintained under full-cost conditions after the expiration of insolvency benefit effects. These measures are essential to generate sufficient revenue to cover rents, retain employed staff, and meet other costs from existing and future earnings. Without such drastic changes, continuing operations would result in substantial losses, and within days or weeks, business activities would have to cease due to illiquidity in the ongoing insolvency proceedings. The administrator's statement emphasizes that these decisive actions now prevent such an outcome.
Many Stores Already Closed
As previously reported, no investors have expressed interest in continuing the Hammer specialty retail concept at roughly half of the locations. The two potential buyers still in negotiations have also shown no commitment to these stores, though they remain interested in the 41 sites that will continue operating in April—without yet presenting a plausible concept, offer, or proof of financing. Consequently, stores with no prospective buyers began clearance sales as early as March 16 to expedite the repurposing of these spaces. All 46 affected Hammer stores have since closed.
No Details on Individual Locations
In coordination with landlords, efforts will continue to transfer these spaces—ideally while preserving jobs—to reputable tenants in the food and non-food sectors. Four interested parties with a focus on brick-and-mortar retail, similar to Hammer, remain engaged in the M&A process. These potential buyers intend to implement their own business models at the former Hammer locations and have signaled interest in taking on employees, a move the provisional insolvency administrator welcomes given the skilled labor shortage. Due to ongoing confidential negotiations, no details about specific locations can be disclosed.
Insolvency Payments Covered Through End of March
Wage Claims Secured Until End of March 2026
By the end of March 2026, all salary and wage claims for the roughly 1,100 employees will be covered by insolvency benefits from Germany's Federal Employment Agency. Even in March 2026, advance financing of these benefits will ensure timely payment. From April 2026 onward, however, employee wages must once again be funded from ongoing business operations. A permanent continuation of the company without an investor remains impossible for the reasons stated.
Even as liquidation sales begin, the merger and acquisition (M&A) process will continue without restriction. Should an investor be found during the liquidation phase—one interested not only in taking over the retail spaces and employment contracts but also in preserving the Hammer concept—the clearance sale could be halted at any time, and the company transferred to the new owner even at this stage.
Insolvency Proceedings to Open
On January 27, 2026, the competent Bielefeld District Court ordered provisional insolvency administration for the assets of Hammer Raumstylisten GmbH and appointed attorney Stefan Meyer of PLUTA Rechtsanwalts GmbH as the provisional insolvency administrator. Since then, the company's operations have continued within the bounds of possibility. Based on the expert assessment by the provisional administrator, formal insolvency proceedings are expected to commence on April 1, 2026. Meyer and his PLUTA team continue to work intensively with all stakeholders to find a solution for Hammer that preserves as many jobs as possible.
Challenging Conditions
Just days after the insolvency filing, a comprehensive M&A process was launched in early February 2026, which remains ongoing and will extend beyond April 1, 2026. The M&A advisor, Dr. Wieselhuber & Partner—with Dr. Marcus Backes leading the project—has actively approached over 300 potential investors. However, the response so far has been sobering, attributed in part to the company's second insolvency within months, a highly difficult market environment for brick-and-mortar retail, and its precarious financial state.
"The framework conditions in this case are extremely challenging," explained provisional insolvency administrator and PLUTA Managing Partner Stefan Meyer. "When we took over at the end of January, we found the company in a uniquely dire situation: a second insolvency within weeks, no available liquidity, no free insolvency estate, and a completely inadequate supply of goods for its many locations. Due to a lack of funds, we could only address the latter to a very limited—and ultimately insufficient—extent. While we've now had to initiate liquidation sales across all remaining open stores—a step that was unavoidable to protect employees—we continue to pursue an investor-led solution. Unfortunately, no buyer has yet emerged for the Hammer specialist market concept, which, given the starting conditions and the company's state, isn't entirely surprising. If it becomes clear in the coming weeks that continuing the Hammer concept is impossible, our goal will remain to ensure that as many locations as possible can be sustained under different retail models, allowing employees to keep their jobs and find a new home there. Despite the extraordinarily difficult circumstances—and everything they've endured in recent months—the vast majority of staff have shown remarkable dedication, for which I'm deeply grateful. This commitment reinforces our responsibility to fight for these jobs with every resource at our disposal."
