The corona crisis has changed the global economy. Many German companies suffer severely from the consequences of the measures to contain the virus. The reopening is not enough for retailers like the textile discount store Takko to stabilize the company’s financial position, reports the “Wirtschaftswoche”.
Most recently, the Kik competitor based in Telgte in the Münsterland region still achieved promising sales of around EUR 1.1 billion. However, Takko recently suspended interest payments on a bond to secure the group’s liquidity. Across Europe, the company has more than 1900 branches and 18,000 employees who are now under threat.
The Corona crisis reduced the Germans’ desire to buy. Fashion retailers in particular are feeling this development strongly, because unsold and perishable goods are piled up in their shops. Spring collections are already difficult to sell and will be out of fashion next year. That is why discount battles in retail are threatening, which will additionally damage companies.
The trend towards online and second-hand business is also fatal for fashion retailers and is burdening their sales.
After the reopening of its branches, Takko now advertises “30% on everything”. In addition, Takko hired external consultants to find a solution and avoid default.