Insolvency drama: Three branches of the fabric retail chain Der Stoff” are closing!

Insolvency drama: Three branches of the fabric retail chain Der Stoff” are closing!

There is once again worrying news in the German textile industry. The fabric retail chain “Der Stoff” has announced that it will restructure itself through self-administration insolvency proceedings. The Nordhorn District Court opened the proceedings on October 1, 2025. The challenge for the group is great, as it has to close three of its 37 branches. Locations in Wiesbaden, Bremen-Vegesack and Naumburg are affected, with the closure of the first two branches planned for the end of November, while the Naumburg branch will continue to operate until the end of December.

As reported, the branches are under pressure as they have made losses overall. As a result, eleven employees had to be laid off. However, Eric Coordes, an experienced restructuring expert working with the company, is optimistic that further layoffs will remain the exception. “Der Stoff” has made a name for itself in the past by offering a wide range of fabrics, haberdashery, accessories and sewing machines. In 2024, the company achieved an impressive annual turnover of 13 million euros.

A look behind the scenes

The group of companies, which was founded 25 years ago, is made up of Der Stoff Stoffhandels GmbH, which employs around 90 people in eight branches, and Hemkon Stoff GmbH with around 210 employees in 31 branches. The restructuring is being carried out with the support of restructuring experts, which should give the affected employees some planning security. Coordes hopes that the remediation procedures can be completed by early 2026. Many of the remaining branches, including those in North Rhine-Westphalia, have received a certain degree of stability.

It's not just “The Fabric” that is suffering from the current market situation. The textile and clothing industry in Germany is under pressure, which is also clear from recently published statistics on insolvencies. According to data from the Federal Statistical Office, there was a concerted wave of bankruptcies in this industry from 2008 to 2024, which also hit other companies hard.

Clearance sales and closings

Some affected stores have already started clearance sales to reduce inventory. In Dinslaken in particular, there were discounts of up to 70 percent shortly before the closure at the beginning of October, which points to the financial necessity of the situation. The branch in Wilhelmshaven will also have to close in mid-October due to a lack of staff. The current situation is difficult, but plans appear to be already on the table to secure the future of the company and its remaining branches.

The coming months will be crucial for “Der Stoff”, whose management is led by Dr. Nina Konjer is headed, in cooperation with the restructuring people. The textile and clothing market remains challenging and the hope is that the measures taken will quickly have an impact.

Read more about the renovation and the current market situation calf, more details can be found at merkur.de, and for statistics visit Statista.