Famous fashion brand files for bankruptcy
Dollinger, a fashion retailer based in the German city of Bad Reichenhall known for its traditional costumes, has announced that it has filed for bankruptcy due to financial difficulties. The company stated that it will continue its commercial operations.
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Dollinger, a fashion retailer known for its traditional costumes, particularly in southern Germany, has filed for bankruptcy under self-administration.
The company formalized this step with an application to the Traunstein district court. Dollinger announced that it will continue to operate its seven stores in Bad Reichenhall, Berchtesgaden, Reit im Winkl, Ruhpolding, Salzburg, and Traunstein.
The company's financial difficulties are attributed to factors such as high rental contracts and the demand for repayment of aid payments received during the coronavirus pandemic. Kathrin and Sebastian Proft, who manage Dollinger, have been running the company as the third generation since 2012. The company had previously shifted its product range toward sustainable brands and its own production processes in an effort to improve its financial situation.