Cult jeans brand Closed files for bankruptcy: What does that mean for Cologne?

Cult jeans brand Closed files for bankruptcy: What does that mean for Cologne?

The Hamburg fashion brand Closed is facing difficult times. With high levels of debt, the company filed for insolvency at the district court in Hamburg on August 5, 2025. Despite this serious situation, the brand, known for its cult jeans, emphasizes that it is fundamentally profitable. The business remains open for the time being and initial discussions with potential investors have already begun. The provisional insolvency administrator will be Stefan Denkhaus, who will now manage the business and look for solutions to keep the brand afloat. Closed is represented in Germany, Austria, the Netherlands, Belgium and Spain with a total of 27 branches, including two locations in Cologne: one on Papstnstrasse and one in Rodenkirchen on Hauptstrasse. These branches are not affected by the bankruptcy filing, nor are the stores abroad.

Why did it have to come to this? The reasons for insolvency are complex and lie primarily in the high costs and the associated debt. Closed achieved sales of around 120 million euros last year. The sales distribution also shows that 40% of sales were achieved through sales to dealers, 35% through stationary stores and 25% through online business. Despite these reserves, Closed's future remains uncertain.

Increase in bankruptcies in the fashion industry

Closed's bankruptcy is not just an isolated case. In Germany, the number of bankruptcies in the fashion industry has recently increased significantly. According to an analysis by Falkensteg, the number of bankruptcies has increased to 160 cases, an increase of 57% since 2020. In the textile industry the increase is even 60%. This gloomy forecast was created by Sebastian Wilde, a partner at Falkensteg, and TW editor Bert Rösch. They expect that the number of major fashion bankruptcies could rise from 33 to over 40 in 2024.

The outlook for the fashion industry is cautiously pessimistic. The reasons for this include the persistently high financing costs and the slow return of consumers' purchasing mood. Many people are cutting back on non-essential expenses, and this is leading to a decline in retail sales. Consumers are currently tending to buy less clothing and postpone investments.

In today's world, it is crucial for fashion brands to adapt to changing conditions. Closed now faces the challenge of finding ways to overcome this crisis. While stores remain open and discussions with investors continue, it remains to be seen how successful efforts will be to save the venerable brand.

This could be a crucial point for the Cologne branches. Because fashion and retail are not only economic factors, but also part of the quality of life and urban lifestyle in our city.