Continuation Secured: Who Has Taken Over Palmers

The insolvent lingerie retailer Palmers has been taken over by the Danish company Change of Scandinavia. With the investor's entry, Palmers can transfer the 5 percent quota due to creditors today, and the takeover also ensures the continuation of the company, Palmers announced in a statement on Monday afternoon. The textile company plans to settle a total of 20 percent of the debts in the next two years.

Palmers creditors had accepted the restructuring plan

On May 20, the Palmers creditors accepted the proposed restructuring plan. An investor to save the traditional company was promised at that time, but not yet named. The remaining quota payments to creditors of 5 percent each, payable within 12, 18, and 24 months from the acceptance of the restructuring plan, will now be raised with the financial support of the investor.

The Danish Change of Scandinavia produces and distributes mainly women's underwear under the fashion brand Change Lingerie. The company, which has indirectly acquired 100 percent of Palmers Textil AG, has agreed to the payment plan for further restructuring, a spokesperson told APA. The creditor protection association KSV1870 now expects the insolvency court confirmation of the accepted restructuring plan shortly, as stated in a release.

As part of the takeover, it was agreed that "long-term strategically sensible synergies - especially in procurement and production - should be achieved," the statement said. With the entry of Change of Scandinavia, "a stable company development and thus sustainable profitability should also be achieved."

Palmers currently with 117 locations in Austria

Palmers ran out of money this year, and the company had to file for insolvency in February. Since then, around 50 branches have been closed, over a hundred employees and several franchise contracts have been terminated. Palmers currently has 117 locations in Austria and still employs around 340 staff.

The company was founded in 1914 by Ludwig Palmers as a lingerie store in Innsbruck and gained attention from the 1950s onwards, especially through its billboard advertising. Palmers was family-owned until 2004, then belonged to financial investors like the German fund Quadriga until 2015, and afterwards to the brothers Luca and Tino Wieser as well as Matvei Hutman. Palmers caused a scandal during the Corona pandemic when the lingerie retailer, together with the fiber manufacturer Lenzing, entered the business for FFP2 masks with the joint venture Hygiene Austria, but labeled masks from China as "Made in Austria."

(APA/Red)

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