The well-known menswear retailer Wormland has filed for insolvency for the second time in just 18 months, despite its stores being located in some of Germany’s most prestigious shopping areas.
The company submitted its application to the local court in Osnabrück, confirming that it can no longer sustain operations under current financial pressures. Wormland operates nine stores nationwide, including branches at Munich’s Marienplatz and Hamburg’s Europa Passage, both among Germany’s most expensive retail locations.
High rents and low demand
According to managing director Dr. Ralf Napiwotzki, even strong sales could not offset the extremely high monthly rents in these premium areas. “The fashion market is facing major challenges — as is the entire inner-city retail sector,” Napiwotzki explained in a company statement.
He pointed out that the men’s fashion segment has been hit particularly hard by the ongoing consumer slowdown, with significantly lower demand compared to women’s and children’s clothing.
Napiwotzki, who now acts as Chief Restructuring Officer (CRO), is overseeing the company’s restructuring process.
Business continues for now
Attorney Stephan Michels has been appointed as the preliminary insolvency administrator. He confirmed that operations will continue in all nine branches for the time being.
The salaries of roughly 250 employees are secured for three months through insolvency compensation provided by the German Employment Agency.
“We will soon start an investor process,” Michels announced, adding that first potential buyers have already expressed interest.
From rescue to relapse
Wormland had already gone bankrupt once before, at the beginning of 2024. The proceedings were conducted under self-administration, and the company appeared to recover by August, when it was taken over by Lengermann & Trieschmann (L&T), a family-owned department store group based in Osnabrück.
At the time, high inflation, rising energy and logistics costs, and increased rent and personnel expenses were cited as the main reasons for the insolvency.
“We reacted too late,” admits L&T CEO
L&T managing director Mark Rauschen openly admitted to strategic mistakes: “Looking back, we as a third-generation family business made errors. We realized too late that much deeper and more decisive cuts were necessary.”
As part of the previous restructuring, the company relocated its headquarters from Hanover to Osnabrück to save costs. Despite these efforts, the brand could not withstand the persistent financial strain of Germany’s retail downturn.
What comes next
While the current insolvency process is underway, Wormland’s management and the provisional administrator are looking for new investors to keep the chain alive. The future of the brand — once known for its curated selection of premium menswear — now depends on whether a financially strong partner steps in.
For now, customers can still shop at all branches, though it remains uncertain whether Wormland can escape insolvency a second time.
