One of Germany's traditional fashion businesses is facing a serious financial crisis after 162 years of activity.
The vest chain Keller-Warth, founded in 1864, has applied for the opening of the bankruptcy procedure, raising questions about the company's future and about 90 employees.
According to German media reports"Bild", the family company with headquarters in Biberach, in Baden-Wurtemberg, operates 14 stores in seven southern German cities.
Business is run by Gunter Warth, representative of the fifth generation of the founding family.
Why is a company risking 162-year-old history?
According to German reports, financial difficulties are related to changing consumer habits, reducing the number of customers in traditional commercial centres, and increasing operating costs.
The impact has also had the long - term consequences of pandemic, during which many retail businesses faced considerable closure and loss.
The company's manager has acknowledged that the fashion market has radically changed and that traditional business models are facing new challenges.
What will happen to 14 stores?
Despite bankruptcy procedure, Keller-Warth shops are expected to continue operating at the moment.
The company is present in Biberach, Ravensburg, Laupheim, Riedlingen, Oberjoch, ãoberrylingen and Freiburg.
Lawyer Michael Winterhoff has been appointed temporary manager of the procedure, with the task of examining the financial situation and the possibilities for continuing the activity.
The goal is to restructure business and preserve more jobs.
A final decision has yet to be made to close shops or cut personnel.
Another Warning for Traditional Trade
Keller-Warth's case reflects the difficulties that traditional fashion businesses in Germany are facing, while consumers are changing the way they buy.
For the company that has survived for more than a century and a half, the challenge now is to find a stable business model.
For about 90 employees, the future remains uncertain, while the restructuring procedure will determine whether the company's 162-year history will continue.
