Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

PRESS RELEASE: Adler Modemärkte AG: Government endangers around 3,200 jobs at ADLER

05/04/2021 | 03:30am EDT
DGAP-News: Adler Modemärkte AG / Key word(s): Miscellaneous 
Adler Modemärkte AG: Government endangers around 3,200 jobs at ADLER 
2021-05-04 / 09:29 
The issuer is solely responsible for the content of this announcement. 
Traditional company in intensive restructuring negotiations 
Government endangers around 3,200 jobs at ADLER 
Federal Ministry of Finance and Federal Ministry of Economics oppose loans from economic stabilisation fund 
Haibach (near Aschaffenburg), 4. May 2021 - The restructuring of Adler Modemärkte AG, which has been successfull in the 
textile retail sector for more than 70 years, threatens to fail due to resistance from the government. Thus, the future 
of the approximately 3,200 employees is uncertain. The Executive Board urgently appeals to the responsible Federal 
Ministers Olaf Scholz and Peter Altmaier to give up their obstructive position and agree to support from the economic 
stabilisation fund (Wirtschaftsstabiliesierungsfonds) established by the federal government. 
Although the company is in promising and advanced negotiations with several national and international investor groups, 
ADLER is in danger of running out of money due to the tightened lockdown conditions ordered by authorities as part of 
the so-called "federal emergency brake" (Bundes-Notbremse). As a result of the further tightening of the nationwide 
lockdown from 23 April 2021, ADLER requires additional financing of around EUR10 million. Accordingly, the company has 
been in close exchange with the responsible parties of the economic stabilisation fund for several weeks. However, the 
Federal Ministry of Finance and the Federal Ministry of Economics have been reluctant to commit to the confirmation of 
a loan for ADLER, despite insistent reminders of the resulting consequences for it's roughly 3,200 employees. 
The group has been working on a restructuring in the course of insolvency proceedings in self-administration since 12 
January 2021. In this context, by securing a mass loan and rigorous cost management, the company had succeeded in 
ensuring the financing of its operative business up to date, despite the extensive closure of almost all of its over 
140 locations in Germany. 
"It is dramatic that ADLER, despite the hopes for an ending lockdown due to dynamically rising vaccination figures and 
falling incidence rates, is now finding itself in an increasingly difficult situation. We are doing everything we can 
to secure a future for our roughly 3,200 employees. After all, ADLER was a financially healthy company before the 
pandemic and got into this crisis through no fault of its own." Thomas Freude, CEO of the company, commented. 
The Company's aim is to reorganise in line with an insolvency plan developed as part of self-administered insolvency 
proceedings. The Company has commenced the necessary preparations and is intensively persuing an investor search, and 
it expects that this preliminary work will continue into June 2021. The Executive Board has appointed the attorney Dr 
Christian Gerloff, of Gerloff Liebler Rechtsanwälte - a prominent expert on restructuring and insolvency in the textile 
retail sector - to assist in this process as general representative. The Local Court has appointed the attorney Tobias 
Wahl, of Anchor Rechtsanwälte, to serve as preliminary trustee. 
"It is utterly unbelievable to me that a traditional company like ADLER, with millions of loyal customers, has so far 
been denied any government support - neither via the economic stabilisation fund nor via the bridging assistance III 
(Überbrückungshilfe III). This means that around 3,200 employees are facing an uncertain future. The behaviour of the 
Federal Ministry of Finance and the Federal Ministry of Economic Affairs is diametrically opposed to the federal 
government's widely announced policy," adds lawyer Dr Christian Gerloff, general representative in the insolvency 
proceedings at ADLER. 
Market-leading position and established business model with millions of loyal customers in the 55+ age group - solid 
basis for return to profitable growth 
Since the Company was founded in 1948, ADLER has become the market leader in textile retailing in the high-purchasing 
power segment of the 50+ age group with around 9 million very loyal customers. Accordingly, regardless of current 
developments, ADLER has a promising business model to return to profitable growth following financial restructuring. 
The Executive Board will continue to push ahead with the measures contained in the strategy programme to establish a 
completely digital value chain, streamline structures and processes along with further efficiency enhancement measures. 
ADLER entered the pandemic with a healthy balance sheet and liquidity at a record high 
The example of ADLER shows that in the textile retail sector, even a company that at the end of 2019 had still reported 
record net liquidity of EUR70.1 million, a high consolidated net profit and a very solid balance sheet quality can find 
itself in an existential crisis through no fault of its own and within just 12 months. The lockdowns imposed since 
March 2020 have seen revenue shrink by approximately EUR 280 million. 
Non-German companies not affected - Stores in Austria and Luxembourg trading again after lifting of local lockdowns; 
online trading surges by 36% 
The subsidiaries in Austria, Switzerland and Luxembourg are not affected by the insolvency. The five shops in 
Luxembourg (3) and Switzerland (2) are open for business in compliance with strict hygiene and safety standards; this 
also applies to the majority of the 24 fashion shops in Austria. ADLER customers can currently continue to order the 
product range via the online shop at www.adlermode.com or via the order hotline 0800-0062010. The popularity of ADLER 
products among customers is demonstrated by the dynamic growth of 36% that the Group achieved in online retailing in 
the first three months of 2021. 
Adler Modemärkte AG press enquiries and investor relations: 
Peter Dietz & Jasmin Dentz 
Media und Investor Relations 
Tel.: 069 - 97 12 47-33 bzw. 069 - 97 12 47-31 
E-mail: investorrelations@adler.de 
About Adler Modemärkte AG: 
Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most 
important textile retailers. In 2019, the Group generated revenue of EUR495.4 million and EBITDA of EUR70.3 million. As at 
30 September 2020, ADLER employed a workforce of around 3,350 and currently operates 172 stores, 143 of which are 
located in Germany, 24 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on 
large-space concepts offering in excess of 1,400 m2 of retail space. With its many own brands and select external 
brands, ADLER offers a highly diverse product range. Thanks to more than 70 years of tradition and strong customer 
loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 55 and over. 
For more information: www.adlermode-unternehmen.com; www.adlermode.com 
For more information:: www.adlermode-unternehmen.com; www.adlermode.com 
2021-05-04 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
Language:     English 
Company:      Adler Modemärkte AG 
              Industriestraße Ost 1-7 
              63808 Haibach 
Phone:        +49 (0) 6021 633 0 
Fax:          +49 (0) 6021 633 1299 
E-mail:       info@adler.de 
Internet:     www.adlermode.com 
ISIN:         DE000A1H8MU2 
WKN:          A1H8MU 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange 
EQS News ID:  1192058 
End of News   DGAP News Service 

1192058 2021-05-04

Image link: 

(END) Dow Jones Newswires

May 04, 2021 03:29 ET (07:29 GMT)

Stocks mentioned in the article
ChangeLast1st jan.
ADLER GROUP S.A. 1.37% 23.62 Delayed Quote.-18.55%
ADLER MODEMÄRKTE AG 0.41% 0.484 Delayed Quote.-78.58%
DJ INDUSTRIAL 1.06% 34382.13 Delayed Quote.11.16%
05/12DGAP-PVR  : Adler Modemärkte AG: Correction of a release from 07/05/2021 accordi..
05/12ADLER MODEMÄRKTE AG : Correction of a release from 07/05/2021 according to Artic..
05/07ADLER MODEMÄRKTE AG : Release according to Article 40, Section 1 of the WpHG [th..
05/05ADLER MODEMÄRKTE AG : Preliminary announcement of the publication of quarterly r..
05/05DGAP-AFR : Adler Modemärkte AG: Preliminary announcement of the publication of q..
05/04ADLER MODEMÄRKTE  : Government endangers around 3,200 jobs at adler
05/04PRESS RELEASE : Adler Modemärkte AG: Government endangers around 3,200 jobs at A..
05/04ADLER MODEMÄRKTE AG : Government endangers around 3,200 jobs at ADLER
04/29DGAP-PVR : Adler Modemärkte AG: Release according to Article 40, Section 1 of th..
04/28ADLER MODEMÄRKTE  : Wolfgang burgard elected new chairman of the supervisory boa..
More news
Sales 2020 355 M 432 M 432 M
Net income 2020 -52,1 M -63,2 M -63,2 M
Net Debt 2020 237 M 288 M 288 M
P/E ratio 2020 -0,17x
Yield 2020 20,7%
Capitalization 8,96 M 10,9 M 10,9 M
EV / Sales 2020 0,69x
EV / Sales 2021 0,56x
Nbr of Employees 2 193
Free-Float 30,5%
Duration : Period :
Adler Modemärkte AG Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Mean consensus UNDERPERFORM
Number of Analysts 2
Average target price 3,50 €
Last Close Price 0,48 €
Spread / Highest target 623%
Spread / Average Target 623%
Spread / Lowest Target 623%
EPS Revisions
Managers and Directors
Thomas Freude Chairman-Executive Board & Chief Executive Officer
Karsten Odemann Chief Financial Officer & Labor Director
Majed Abu-Zarur Deputy Chairman-Supervisory Board
Corinna Groß Member-Supervisory Board
Wolfgang Burgard Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
KERING18.93%107 035
FAST RETAILING CO., LTD.-5.99%81 154
ROSS STORES, INC.6.26%46 538
HENNES & MAURITZ AB23.20%42 030