Iconic Lingerie Retailer Files for Insolvency Amid Economic Challenges

A well-known lingerie retailer, Palmers, has officially declared insolvency, entering a self-administration restructuring process. The company, which primarily operates in Austria, employs over 500 staff members, with their salaries now being managed through an insolvency payment fund.

Founded in 1915 by Ludwig Emil Palmers, the brand has become synonymous with women's undergarments in the region. However, the retailer has faced significant challenges, leading to the announcement of its insolvency earlier this month. Reports from various Austrian media outlets indicate that the company is actively seeking an investor to assist in navigating through this financial crisis and aims to maintain operations while striving for profitability.

In recent years, Palmers has already undergone downsizing, with plans to close 20 out of approximately 180 stores in Austria. In Germany, where the brand operates around 25 locations, the impact of the insolvency remains uncertain.

Both Austria and Germany are currently grappling with economic downturns that have caused a rise in insolvencies across various sectors. In Austria alone, the number of insolvencies surged by 23.3% in 2024 compared to the previous year, totaling around 6,500 cases. In Germany, 22,500 companies have been forced into bankruptcy, predominantly affecting those in the manufacturing sector. In contrast, Austria's retail, construction, and hospitality industries are currently experiencing the most significant setbacks.

The financial instability faced by Palmers reflects broader trends in the economy as companies struggle to stay afloat in a challenging market environment. The outcome of Palmers' restructuring efforts will not only determine the future of its numerous employees but also impact the brand's legacy in the lingerie retail sector.