Footwear Enterprise Permanently Shuts Down Within Our Nation

In a troubling sign for the retail sector, a popular shoe chain has filed for insolvency. The company, which has been in a preliminary insolvency proceeding since April 2025, announced the closure of all its branches, affecting 150 employees who lose their jobs.

The Hamburg Regional Court initiated the preliminary insolvency proceeding for Onygo in April 2025. Despite renegotiating terms with suppliers and landlords in an attempt to improve business figures, the efforts were unsuccessful. The company's CEO, Frank Revermann, made the announcement.

The closure of Onygo is part of a larger trend of insolvencies and closures in the retail sector. The number of company bankruptcies in various sectors, including craft businesses and retail, has been on the rise for about two years. Other notable companies currently in ongoing insolvency proceedings include The Body Shop and Esprit.

One reason for this increase is consumers buying less due to economic factors, particularly since the pandemic. More people are shopping online, with cheap platforms like Shein, Cider, or Temu becoming increasingly popular. This shift in shopping habits has put pressure on physical stores, making it difficult for them to maintain sales that can cover their costs.

Inflation and rising material and energy costs have also contributed to the increase in insolvencies. The restructuring concept, which included expanding the range to include textiles and accessories, failed to turn the tide for Onygo.

However, not all news is bleak. The cosmetics chain The Body Shop has already found investors. Esprit is set to continue as a licensee.

Another retail chain, Goertz, has initiated three insolvency proceedings since 2022, including one in Austria. The company is still in the process of restructuring its business.

As the retail sector continues to face challenges, it remains to be seen how companies will adapt and navigate these difficult times.