Palmers on the verge of extinction: Creditors decide today about the future!

Palmers on the verge of extinction: Creditors decide today about the future!

Today, May 20, 2025, the Palmers lingerie brand is facing a decisive turning point. How 5min reported, a meeting of creditors will take place to decide on the company's restructuring plan. Palmers, which was founded in 1915, has established itself over the years as one of the most famous lingerie brands in Austria. However, the company now faces the reality of bankruptcy.

Restructuring proceedings with self-administration were opened on February 13, 2025. Meanwhile, the vote on the restructuring plan was initially put on hold, increasing uncertainty about the company's future. So far, 1,543 creditors have registered claims amounting to 76,802,051.15 euros, of which only 17,015,729.04 euros have so far been recognized as legitimate.

Takeover plans and financial challenges

Several potential investors, including a Turkish textile company, a private equity firm and a Swiss investment fund, have expressed interest in rescuing Palmers. According to the restructuring manager Maria-Christina Nau, these discussions are ongoing, but no specific details about the investors have been published. Loud Small newspaper Palmers urgently needs fresh capital to pay off its debts.

In February 2023, Palmers filed for insolvency after facing liabilities of around €80 million. As a result, 47 branches were closed, resulting in the loss of over 100 jobs. Palmers currently operates 70 of its own branches and 46 franchise locations, where the number of employees has fallen to under 400 employees.

The company history and the market

Palmers was founded in 1914 by Ludwig Palmers in Innsbruck and remained family-owned until 2004, before it fell into the hands of financial investors. In 2015 the company was taken over by the Graz brothers Luca and Tino Wieser and Matvei Hutman. However, the company is not only struggling with financial challenges, but also faces competition from other players in the market who have shown little regard for classic lingerie brands in recent years.

The current situation is not unique; There has been an increase in bankruptcies in the industry over the last few years. According to the data from Statistics Austria Insolvency rates in the industrial, construction and commercial sectors have increased since the first quarter of 2021, indicating the ongoing challenges in the economy. Such trends make it particularly difficult for companies like Palmers to compete in a changing market.

The coming hours and days will be crucial for Palmers and the 1,148 claims relating to 515 affected employees. The creditors' meeting's decision could pave the way for a possible rescue or result in the company's permanent closure.