Munich, January 28 – The iconic men’s fashion retailer Wormland at Marienplatz has ceased operations, leading to the termination of all approximately 250 employees. Despite a public plea to “Wormland must stay!” displayed on a banner at Marienplatz, efforts to save the insolvent company have failed. Insolvency administrator Stephan Michels announced the decision by the provisional creditors’ committee to fully close Wormland.
Insolvency Finalized, Branches to Close Permanently
The District Court of Osnabrück has officially opened insolvency proceedings for Theo Wormland GmbH. The company’s eight branches will not reopen, with the exception of Hanover and Oberhausen, where only clearance sales of existing stock will take place. Customers at the Munich Marienplatz store were informed of the closure on Wednesday.
This marks Wormland’s second insolvency filing within a year, having previously been rescued from a similar situation. The company cited persistent consumer reluctance in men’s fashion as the primary reason for its renewed financial difficulties. Business operations had initially continued, with employees receiving insolvency benefits from the employment agency.
Investor Interest Fails Due to Unresolved Rental Situation
According to the insolvency administrator, several investors expressed interest and submitted offers to acquire Wormland. However, none of these offers were deemed viable, primarily due to an unresolved rental situation. It is understood that no agreement could be reached between potential investors and landlords for either a full or partial takeover of the lease agreements, with creditors ultimately deeming the risk too high.
An liquidation team will now manage the closure of the branches. Michels stated that discussions regarding the takeover of individual locations remain possible if existing or new interested parties can reach an agreement with landlords.
Rumors of Lindt Taking Over Marienplatz Location
Speculation is rife regarding the future of Wormland’s prominent Marienplatz premises in Munich. The more than 1,000-square-meter prime location in Munich’s city center is reportedly already re-let. The Swiss chocolate manufacturer Lindt & Sprüngli is being discussed as a potential successor. When contacted, a company spokesperson would neither confirm nor deny the rumors, stating, “Currently, we cannot share any information about a new Lindt opening in Munich.”
Previously, Munich’s mayoral candidate Clemens Baumgärtner (CSU) had advocated for the preservation of the traditional business. He told the AZ, “People have been working at Wormland for up to 30 years.” Baumgärtner expressed his disapproval of another large corporation occupying the corner building at Marienplatz. Regarding the rumors of a Swiss successor, he commented, “This will make Munich’s city center interchangeable and faceless.”
Public and Employee Reactions
The closure has sparked public discussion, with comments on social media and news outlets highlighting the impact of high rents on local businesses. One commenter noted, “That the store got emptier and emptier in recent years is not due to general consumer reluctance, but to the product range!” Another remarked, “What is striking again in this article is that rents apparently play an existential role in such cases. I can well imagine that the Swiss company Lindt could afford the rent.”
The sentiment among some is that while tenants can always be found, it increasingly leads to international chains replacing local businesses, contributing to the homogenization of city centers.
The job losses at Wormland underscore a broader trend of challenges faced by traditional retailers in prime urban locations, grappling with evolving consumer habits and rising operational costs, particularly rent.
Source: https://www.abendzeitung-muenchen.de/muenchen/jobverlust-am-marienplatz-wormland-entlaesst-alle-mitarbeitenden-art-1108749
