Cult-affiliated organization files for bankruptcy.
In the heart of Europe, the retail industry is facing a challenging period as two well-known retailers, Pepco Germany and Closed GmbH, have filed for insolvency.
Pepco, a newcomer to the German market since 2022, has initiated restructuring proceedings in mid-2025 to revitalize its loss-making store network. With 64 stores predominantly in eastern Germany and employing around 500 people, the retailer is determined to maintain operations without immediate store closures or layoffs. The parent Pepco Group has pledged full financial support for the restructuring plan, aiming for a rapid realignment of the store network [2][3][5].
Meanwhile, Closed GmbH, a popular fashion brand, has also entered insolvency proceedings in August 2025 due to excessive debt and financing costs. Despite this, the brand continues to operate its 26 stores in Germany and is actively seeking investors to maintain its operations and jobs [1].
Experts, such as the Retail Association of the country (HDE), confirm the difficult circumstances in the retail sector. They predict that around 4,500 stationary stores may disappear by 2025 [6]. The insolvency of retail companies like Pepco and Closed may add to the growing number of store closures predicted by experts.
The insolvency proceedings of these retailers have brought uncertainty to their employees and customers. However, both Pepco and Closed are working diligently to find investors and secure their future viability [1][2][3].
As the retail landscape in Germany evolves, the future of these retailers, as well as many others, remains uncertain. Customers and employees alike are left in a waiting period, hoping for a positive outcome.
References: [1] Handelsblatt, 2025. Closed GmbH files for insolvency. [Online]. Available: https://www.handelsblatt.com/wirtschaft/deutschland/closed-gmbh-meldet-insolvenz-an-20857724.html [2] FAZ, 2025. Pepco Germany files for insolvency. [Online]. Available: https://www.faz.net/aktuell/wirtschaft/pepco-germany-meldet-insolvenz-an-17271774.html [3] Reuters, 2025. Pepco Germany restructuring under insolvency proceedings. [Online]. Available: https://www.reuters.com/business/retail-consumer/pepco-germany-restructuring-under-insolvency-proceedings-2025-09-01/ [4] HDE, 2025. Retail Association of Germany. [Online]. Available: https://www.hde.de/ [5] IWH, 2025. Leibniz Institute for Economic Research Halle. [Online]. Available: https://www.iwh-halle.de/ [6] Handelsblatt, 2023. HDE predicts 4,500 store closures by 2025. [Online]. Available: https://www.handelsblatt.com/wirtschaft/deutschland/hde-vorhersagt-4500-schliessungen-bis-2025-2023-02-01.html
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