The attempt to save the insolvent book retailer Weltbild has failed. The company is set to close its doors, resulting in the loss of 440 jobs. A clearance sale has begun as the company prepares to wind down its operations.
Weltbild’s closure: Hopes dashed after initial optimism
When the online retailer Weltbild filed for insolvency in June, there was initial optimism about the company’s future. Sami Sagur, the CFO of Weltbild’s parent company, expressed confidence in the restructuring process, suggesting that it would be successful. However, just two months later, it is clear that Weltbild has no future. The company announced that it plans to cease operations by August 31, 2024. All of its stores will close, and clearance sales have already started, with products being offered at significant discounts both in-store and online. The shutdown will affect 440 employees, who are expected to receive their termination notices in September.
Failed sale and investor reluctance
Following the insolvency filing, the provisional insolvency administrator, Christian Plail of the law firm SGP Schneider Geiwitz, made efforts to find investors willing to save the company. However, these efforts proved unsuccessful. According to a press release, the operational costs, particularly in IT and marketing, were too high, making it difficult to continue running Weltbild profitably under the intense competitive pressure. The only interest from potential buyers was in specific assets such as brand rights and inventory. Plail explained that without new capital, a “permanent and sustainable continuation of operations” was impossible due to the ongoing financial losses. Despite this, the search for investors will continue for other subsidiaries of the WBD2C group, where Plail also serves as the provisional insolvency administrator. The situations of these subsidiaries vary greatly, according to Plail.
Impact on Droege Group and future uncertainties
The closure of Weltbild is a significant setback for the Düsseldorf-based investment company Droege Group, which acquired Weltbild in 2014 following its first insolvency. The company became the cornerstone of Droege’s WBD2C retail group, with additional businesses gradually integrated into the group. For instance, in late 2023, the healthy shoe brand Vamos was added, and in March 2024, significant assets of the Hagen-based mail-order company Westfalia were acquired. These recent acquisitions suggest that Droege may not have fully grasped the severity of the group’s problems or were unaware of the situation.
Interestingly, in June, at the time of Weltbild’s insolvency filing, CFO Sami Sagur emphasized that the company had “the important financial backing of our shareholder, the Droege Group” for its restructuring efforts. However, the situation appears to have changed dramatically since then. It remains unclear what impact Weltbild’s closure will have on its business partners and service providers.
