SinnLeffers

The well-established retailer had enjoyed long term success, selling own brand and designer fashion brands throughout its 47 stores across Germany. SinnLeffers had long been a vibrant and successful business, much loved by German shoppers.

In more recent times, it experienced difficult and uncertain trading conditions, resulting in a formal administration process in 2008. The SinnLeffers’ management team felt that there was an opportunity to rescue elements of the business and, under the supervision of the administration, initiated a restructuring plan.

In partnership, Gordon Brothers and SinnLeffers developed and implemented a strategy that would facilitate the restructure. An Operational plan, which streamlined the business, saw the closure of 23 non-viable stores and liquidation of €55m of inventory. In doing so, the entire estate was cleansed of €23.1m of aged and obsolete stock. Gordon brothers provided a financial and operational guarantee to close the non-viable stores within the 47 store estate.

To underpin the Operational plan, an aggressive sales and marketing plan was established and implemented in two distinct phases. Gordon Brothers’
financial guarantee enabled much needed liquidity to restructure the business and support trade within the remaining 24 profitable stores.

Gordon Brothers’ project management of the closures enabled the SinnLeffers’ management team to focus on restructuring the remaining business. The restructuring plan was hugely successful, resulting in 24 stores being brought out of administration, saving both a well loved high street brand and over two thirds of 2000 jobs.

Patrick Feller, managing director, SinnLeffers, said, “We hired Gordon Brothers to help expedite our strategic restructuring that involved store closures and inventory liquidation on a large scale, providing financial and operational certainty in a highly uncertain environment. In hindsight, our decision to partner-up with Gordon Brothers was completely vindicated; they are very Client focussed and the partnership was characterised by flexibility, speed-of-reaction and integrity.”

Karsten Oberheide, managing director, SinnLeffers, added, “Gordon Brothers’ Retail team integrated superbly with our own Retail teams at central, field and store level – achieving good synergies. They designed, delivered and executed a great trading plan, the success of which was supported by effective marketing and retail execution. It was good to partner with ‘retailers’ who understand retailers!”