Bitter news for customers and employees: Insolvent service provider Mister Minit wants to close 30 branches. Nevertheless, the administrator sees a future for the company.
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Repair and service provider Mister Minit intends to close around 30 of its 148 branches in Germany as part of the ongoing insolvency proceedings. “This measure is essential to maintain the business,” said restructuring expert Christoph Enkler, who has been appointed to the company’s self-administration. Because business operations in its current structure cannot be maintained at a cost cover level.
At the end of April, Minit Service GmbH filed an insolvency claim with the Düsseldorf District Court. Self-administered insolvency proceedings were opened on August 1.
Mr. Minit did not only suffer from the Corona crisis. Even before the pandemic, the shoe repair market had developed poorly. One of the reasons for this was the trend towards cheap shoes and sneakers, which often go unrepaired.
Mister Minit: Several investors are interested
Nonetheless, court appointed trustee Gregor Bräuer sees good opportunities for the company to continue. “After the results obtained so far, I am convinced that Mr. Minit will survive the Corona period and can be successfully rehabilitated thanks to the measures taken in terms of self-administration”, he stressed on Tuesday.
As part of the renovation process, several interested parties have submitted offers to acquire the business. The concepts mainly envisage the continuation of activities after the restructuring.
The company expects negotiations to be concluded by the end of August. Then the results should be presented to the creditors’ bodies.
Minit Service GmbH recently employed around 350 people. As shown by the annual accounts published in the Official Journal, the company recorded a loss of 4.2 million euros on a turnover of 22.3 million euros in the 2018/19 financial year.