Insolvency shock: DIY store chain Schlau in Dresden affected!

Insolvency shock: DIY store chain Schlau in Dresden affected!

In a surprising turn of events, the Brüder Schlau GmbH & Co KG group of companies has filed for self-administration bankruptcy. This also affects the two branches of the Schlau hardware store chain in Dresden, one in Friedrichstadt and one in Seidnitz. The registration was made at the district court in Bielefeld, and around 3,900 employees throughout Germany are affected by the insolvency, including employees at the Dresden locations. Yorck Streitbörger, an experienced lawyer from Bielefeld, was appointed as general representative to advance the restructuring of the company. Dirk Andres acts as provisional administrator.

The Brüder Schlau Group is not an unknown name: founded in 1921 in Minden as a paint wholesaler by the brothers Theodor and Wilhelm Schlau, the company has developed over the years into a significant player in the construction industry. With more than 180 Hammer stores for interior design and home textiles as well as around 60 craft markets under the Schlau brand, the company is deeply rooted in German retail. The first Hammer markets were opened in Bremerhaven and Lübbecke in 1976 and are still very popular today.

Reorganization and continuation of business operations

Despite the bankruptcy, there is a ray of hope: business operations should continue without interruption. All branches remain open and customers can process their orders as usual. In addition, the employees' salaries are covered by the insolvency benefit from the Federal Employment Agency up to and including August, which offers employees a certain level of security. An existing financing concept should help to position the company sustainably for the future.

Bankruptcy is a painful setback for many employees. According to Statista, there were around 110,200 bankruptcies in Germany in 2023, with a clear increase in corporate bankruptcies. The service sector is the hardest hit, and business difficulties appear to be steadily increasing in recent years.

A challenging market

The situation of the Brüder Schlau group is not unique. The market is currently facing a variety of challenges that affect both established companies and start-ups. The increase in bankruptcies is accompanied by financial setbacks, which caused an estimated 56 billion euros in damages from insolvent companies in 2024. With this development in mind, the challenge for the Brüder Schlau Group to successfully restructure its business operations becomes even clearer.

It remains to be seen whether the measures will take effect and the company can work its way out of the crisis. It is to be hoped that there will be a positive turnaround for the employees of the two Dresden branches, which will both secure their jobs and ensure the continuity of the company. An important moment for the hardware store landscape in Dresden, which shows how quickly the situation can change.