After 104 years in business, a German retail and craft supply giant has filed for insolvency under self-administration, putting 3,900 jobs at risk. The Bielefeld District Court approved the restructuring process, affecting more than 180 Hammer stores and 60 Schlau outlets nationwide.
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Brüder Schlau was founded in 1921 as a small paint wholesaler in Porta Westfalica, the family-run company cited rising energy costs, burdensome bureaucracy, and failing economic policies as key pressures. Industry observers view the collapse as part of a wider crisis hitting Germany's Mittelstand, the once-thriving backbone of its economy.
Management, along with insolvency lawyer Yorck Streitbörger, will oversee operations during the restructuring. While they claim stores will remain open and "orders will be processed as usual", scepticism remains high. Insolvency benefits will cover wages only until August 2025, leaving the future uncertain for employees.
Though management insists the "necessary funds" have been secured, critics question the insolvency filing's timing and intent, suggesting a reliance on government aid and creditor concessions.
The downfall of Brüder Schlau signals deeper structural issues in Germany's economy, as traditional businesses buckle under modern policy pressures, leaving thousands of livelihoods in limbo.
Source: www.kettner-edelmetalle.de
