Fahrrad.de files for insolvency: The most important facts summarised
Update (as of 26.01.24): The insolvency administrator of Internetstores GmbH has received approval from the creditors' committee for measures to liquidate the business as a whole. Around 450 employees are likely to be at risk of redundancy as a result. The insolvency proceedings for Internetstores GmbH were applied for last October and opened by Bielefeld Local Court on 1 January 2024. Proceedings under the company's own management.
Some of the online retailer's assets could be taken over by potential buyers. Binding offers have been submitted for the domains, trademarks, brand rights and inventories of the fahrrad.de, Bikester, Brügelmann, Addnature and CAMPZ brands. There is also interest in the six stationary bicycle shops in Germany. An offer has been submitted for the acquisition of all shares in the Swedish subsidiary Addnature AB with its online outdoor shops.
The insolvency administrator, Dr Christian Gerloff, now has the task of negotiating the very different nature and scope of the offers individually. However, Gerloff is confident that this can be achieved in four weeks.
Update (as of 24.10.23): Internetstores GmbH has now filed for insolvency in court and the administrator has been appointed. The company's insolvency application was announced last week and has now been received by Stuttgart Local Court. Internetstores GmbH also owns the online shop Fahrrad.de.
The lawyer Dr Christian Gerloff from Munich has been appointed provisional insolvency administrator. The assets of Internetstores GmbH can only be disposed of with the consent of the insolvency administrator. The insolvency administrator also has the task of managing and securing the assets. Internetstores GmbH employs around 600 people across Europe. Other subsidiaries are also about to file for insolvency.
Update (as of 23/10/2013): The major sporting goods retailer SportScheck has also been affected by the financial difficulties that caused fahrrad.de's insolvency. The Signa company, which is part of René Benko's empire, has decided to part with SportScheck as well. According to reports, however, a new buyer has already been found: The British sports and fashion retailer Frasers is planning to take over all SportScheck shops. Frasers is currently expanding its retail network throughout Europe, but is said to be known for its rough business methods. Otto Scheck founded SportScheck in 1946 and the company has been wholly owned by the Otto Group since 1991. Around three years ago, Signa Retail then acquired SportScheck from the Otto Group, which was also insolvent.
The new owner from the UK has announced his intention to invest in the shop concept and strengthen the online business at the same time. He also wants to further expand relationships with brand manufacturers. Frasers and its sports chain Sports Direct have partnerships with leading sports brands Nike and Adidas. Adidas boss Björn Gulden has assured Frasers of his support.
The takeover still has to be approved by the competition authorities. According to a statement from the Group, the deal is expected to be finalised in the first quarter of 2024. Benko recently withdrew his commitment for a loan of 150 million euros from online sporting goods retailer Signa Sports United. Benko's company was listed on the New York Stock Exchange two years ago. Due to increasing losses, Signa Sports is now planning to close unprofitable subsidiaries.
Original notification from 20/10/2023 | The bicycle industry is in turmoil after the news of Fahrrad.de's planned insolvency filing. René Benko has decided to stop the cash flow for the part of his company that is behind 80 online retailers. Signa Sports United (SSU) will not be granted the promised financing of 150 million euros. This decision has far-reaching implications for the industry.
Signa Sports United: Will SportScheck go to Sports Direct?
According to a report in Manager Magazin on 17 October, René Benko's Signa Group has decided to give up its sports retailers under the Signa Sports United (SSU) umbrella. It is reported that Benko has sold the SportScheck brand to the British sports giant Mike Ashley (Sports Direct) and has also withdrawn the commitment for a loan of 150 million euros to the Signa Sports United subsidiary. This also affects several online shops such as Fahrrad.de, Chainreactioncycles.com (with the Vitus and Nukeproof brands), Probikeshop.com, Redcycling.de and Wiggle.com as well as the brand shops of Votec and Ortler Bikes.
It is currently not possible to process returns on certain portals. This is indicated by a banner on the website. The exact reasons for this restriction are not explained in detail in the short and concise notice, but appear to be of serious importance.
No returns processing at fahrrad.de - what happens next?
According to the company, business operations will be resumed if insolvency proceedings are authorised under self-administration. This is expected to happen in the coming week.
Insolvency under self-administration enables a company to continue operations under its own management despite insolvency. The company is supported by a trustee who takes over supervision. This type of insolvency gives the company the opportunity to carry out a restructuring or reorganisation and thus strive to restore financial stability.
Signa and René Benko
Benko and his Signa Holding were the talk of the town in their efforts to save the ailing Galeria department stores' group. However, this rescue attempt was only partially successful. Most of the shops have now been closed. In a further bankruptcy report, it has now been announced that the Sportscheck chain, which was acquired by Signa following the insolvency of the Otto Group, will be sold again and taken over by another investor. It remains to be seen how things will develop.
The Signa Sports United share has been on a continuous downward trend since its IPO at the end of 2021. A share that was once worth over seven euros is now worth just a few cents. As reported by Wirtschaftswoche, the company's value is said to have fallen from 3.2 billion US dollars to just a few million dollars.
Maik Schröder
Editor
