OpCapita-backed AppelrathCüpper enters self-administration

Bero-Alexander Lau of White & Case has been appointed as provisional trustee by the district court in Cologne. Buchalik Broemmekamp is also supporting the company in developing a restructuring concept. The process is expected to be completed by the end of 2020.

The Cologne-based company generates revenues of €133m and has 870 employees, according to OpCapita's website. It sells various women's clothing brands via its 16 stores in Germany, as well as online, with its shop-based business making up 95% of its revenues. Its online shop was launched in 2015 and is currently still open.

CEO Lothar Schäfer cited shop closures prompted by social distancing measures as the reason behind the initiation of proceedings in a report by TextilWirtschaft, since the company's revenues have been significantly reduced.

The report added that the company has spoken with its bank lenders and has applied for a loan under Germany's state-backed KfW programme for companies affected by the coronavirus outbreak. However, the company has not yet received a loan and therefore initiated self-administration proceedings.

OpCapita bought a majority stake in the company in July 2016 from its family owners and Advent, which owned the company via Moda Holding. It deployed equity via OpCapita Consumer Opportunities Fund, which held a final close in November 2014 on €110m. The fund targeted companies based in western Europe in the consumer sector and has two remaining portfolio companies including AppelrathCüpper, according to Unquote Data. The fund made three platform investments and its second remaining portfolio company is Spain-based frozen food retailer La Sirena, which the GP bought from 3i in November 2014. The fund's other Germany-based investment, discount retailer NKD, was sold to TDR Capital in May 2019.

In March 2020, Perusa-backed steak restaurant chain Maredo also initiated insolvency proceedings following a sharp drop in revenues in the wake of coronavirus-related closures, as reported by Unquote. In the same month, Germany-based automotive services and logistics firm Arwe initiated self-administration proceedings, also citing coronavirus-related disruption and concern for the company's future finances, as reported.

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• Topics
• Restructuring
• DACH
• Consumer
• Germany
• OpCapita
• coronavirus