Italian-inspired premium denim label Closed has filed for insolvency and placed a corresponding application with the Hamburg district court in Germany. Despite its financial difficulties, business operations are to continue unchanged.

Hamburg-based lawyer Stefan Denkhaus from the law firm BRL has been appointed provisional insolvency administrator. The pre-financing of insolvency benefits for the approximately 400 employees has already been initiated to ensure continuous salary payments and thus the stability of the operating business.

Closed cites excessive debt and the associated financing costs as the reason for the insolvency. There had been speculation about the label’s financial situation for some time. Both its own e-commerce and its retail business with 26 German stores and other European locations are now affected. Closed emphasised that it is generally operating profitably in these areas.

The search for an investor has already begun. The first promising talks have been held with potential investors. “Closed is a strong brand with a clear profile. I am confident that an investor can be found and that the company will remain a Hamburg brand,” explained Denkhaus. The management is also optimistic. Managing partners Gordon Giers (Product) and Til Nadler (Sales) report initial “promising talks” with potential investors.

The company had already initiated structural changes before filing for insolvency. Restructuring expert Lothar Hiese was recently appointed to the management board as the new CFO. He succeeds Hans Redlefsen, who has accompanied the company in this position for over 27 years and will remain associated with the company as a co-shareholder.

Closed was founded in 1978 and has since made a name for itself with high-quality denim collections. In 2023, the estimated turnover was around 125 million euros. In 2022, the first American store opened in Los Angeles.