Dieter Holzer appointed new CEO of Closed following acquisition

It was announced a few days ago that the insolvent Hamburg-based fashion company Closed has found new owners. During a press conference on Monday, the parties involved revealed initial details about the brand's future. The purchase price, however, was not disclosed.

Dieter Holzer will take over the management of the company as CEO and co-shareholder. He will continue to work with the existing management team, including creative director Gordon Giers.

In Holzer, Closed gains a highly experienced industry leader. Throughout his career, he has managed German apparel companies such as Marc O'Polo and Tom Tailor. He previously held positions at Tommy Hilfiger and Esprit. Holzer, together with the Böck family of entrepreneurs who own Marc O'Polo, was successful in the bidding process for Closed.

Closed to remain independent

Insolvency administrator Stefan Denkhaus stated that the transaction is expected to be finalised by the end of the month. It is still subject to approval from the Federal Cartel Office and the fulfilment of other closing conditions. Denkhaus added that he has “no doubt” these requirements will be met. The future of Closed's international subsidiaries, however, is still under negotiation.

Maximilian Böck, the current CEO of Marc O'Polo, stressed that the acquisition of Closed is a “private investment” by the Götz family office. Consequently, Closed and Marc O'Polo will continue to operate as independent companies. “There are no plans to leverage any synergies,” Böck emphasised.

He justified the investment by stating that Closed is “a great brand” with “a great deal of potential”. He also highlighted the value of the company's employees and its “entire structure, which has worked well together for many years”. The goal is to retain as many employees as possible. However, insolvency administrator Denkhaus explained that approximately 25 redundancies are unavoidable. A majority of the brand's own stores are also set to be retained.

Strategic misjudgements led to insolvency

Chief restructuring officer (CRO) Lothar Hiese reiterated that Closed had remained operationally profitable until the very end. In the 2023/24 financial year, the company achieved a positive earnings before interest, taxes, depreciation and amortisation (EBITDA) in the single-digit millions on a turnover of approximately 120 million euros. The bottom line, however, showed a single-digit million loss due to high levels of debt.

This was attributed to strategic misjudgements. Hiese explained that in a challenging market environment, too much capital was invested in growth initiatives that failed to deliver the expected results. He added that cost structures had been “somewhat neglected”. These factors combined led to a high level of debt that could no longer be financed. Consequently, the company had to file for insolvency at the beginning of August.

There will be no more overambitious growth targets under the new ownership. “We want to achieve renewed profitability at a realistic and cautious turnover level,” Hiese stressed.

This article was translated to English using an AI tool.

OR CONTINUE WITH

Closed

Insolvency

Mergers and acquisitions