Pieper Perfume Chain Initiates Self-Administered Insolvency Proceedings
The German perfume retailer Pieper has commenced preliminary insolvency proceedings under self-administration, as confirmed by the company in Herne. Despite the financial restructuring, the business operations of Pieper--both its brick-and-mortar stores and online shop--are continuing without interruption. The company's leadership has stated its intention to implement comprehensive measures to ensure long-term stability and reposition the business for future success.
Established in 1931 in Bochum originally as a soap shop, Pieper has evolved into Germany's largest owner-operated perfume retailer. Today, the company operates more than 140 stores, primarily located in North Rhine-Westphalia, with additional outlets in Lower Saxony, Bremen, and Hamburg. Pieper remains a family-run business, currently managed by a direct descendant of its founder.
The decision to enter self-administered insolvency allows the existing management team to retain operational control while working alongside a court-appointed preliminary administrator. This legal framework is designed to facilitate the company's restructuring efforts, enabling Pieper to stabilize its finances and adapt its business model to changing market conditions.
The company has faced significant challenges in recent years, particularly as a result of the COVID-19 pandemic, which led to temporary store closures and substantial declines in sales. Despite a partial recovery in the business year spanning July 2021 to June 2022, where net revenue reached 113.7 million euros and a modest profit was reported, ongoing cost pressures--including rising energy expenses--have continued to impact profitability. The management had previously indicated a cautious outlook, citing a general decline in consumer spending amid elevated costs.
Following the initiation of insolvency proceedings, Pieper's employees will have their wages and salaries covered for a period of three months by the Federal Employment Agency, as is standard practice in such cases. As of 2022, the company employed nearly 1,000 staff members across its various locations.
The company's recent move underscores the difficult environment facing many retailers in Germany, particularly those in the non-essential goods sector. Pieper's management expressed optimism that the current legal process will provide the necessary framework for sustainable restructuring, with a focus on safeguarding jobs and ensuring the business remains a fixture in the German retail landscape.
Customers can continue to shop at Pieper's retail stores and through its online platform as usual, while the company implements its restructuring strategy. The outcome of the insolvency proceedings will determine the long-term future of the company, which is approaching its centennial anniversary.