The German retail sector has suffered another major blow as the a large retail group confirms the closure of approximately 70 stores following its insolvency filing.
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The company, Schlau Brothers Group, which owns both Schlau and Hammer specialty stores, entered self-administered insolvency in summer 2025 amid rising costs and financial strain.
While the Hammer chain will be partially salvaged through acquisition, saving around 1,200 jobs, roughly 70 of its 93 locations are still set to shut down. No investor was found for the Schlau wholesale division, effectively sealing its fate.
This development means the loss of hundreds of jobs, with discussions already underway with employee representatives. Founded in 1921, the Brüder Schlau Group had become a recognised name in flooring, textiles, and trade supplies.
Experts had warned of a surge in business closures, and the predictions appear to be materialising. According to the German Retail Association (HDI), up to 4,500 retail store closures are expected in 2025. The Federal Statistical Office has recorded a 17% increase in insolvencies over the past decade.
A new strategy for the remaining Hammer stores aims to integrate trade services more deeply, moving beyond traditional retail to secure long-term viability in an increasingly challenging economic climate.
Source: www.karlsruhe-insider.de
