Peek & Cloppenburg Düsseldorf Receives Bundeskartellamt Approval to Acquire Insolvent Textilkette Sinn
Acquisition of Sinn GmbH by P&C
The Bundeskartellamt, Germany’s Federal Cartel Office, has granted approval to Peek & Cloppenburg Düsseldorf (P&C) to acquire the insolvent textile chain Sinn GmbH. The decision allows P&C to expand its market presence in the stationary textile retail sector.
Andreas Mundt, President of the Bundeskartellamt, stated, "Peek & Cloppenburg has a leading position in the stationary textile retail sector at the national level." He added that the acquisition would enable the company to further increase its market share in certain cities. However, investigations revealed that consumers would still have sufficient alternative options available.
P&C’s Offer and Insolvency Proceedings
JC Switzerland Holding AG, a subsidiary of the P&C Group, submitted a bid for Sinn GmbH, triggering a merger control procedure by the competition authorities. The completion of the acquisition remains subject to further developments.
In August 2024, Sinn GmbH filed for insolvency in self-administration. Business operations have continued in most Sinn fashion stores since then. A creditors’ meeting is scheduled for March, where creditors will vote on the insolvency plan and potential sale to P&C.
According to industry sources, Sinn’s current shareholder, Isabella Göbel, has also expressed interest in continuing the company’s operations.
Sinn GmbH’s Current Operations and P&C’s Presence
The Bundeskartellamt reported that Sinn GmbH currently operates 35 locations in Germany, primarily in North Rhine-Westphalia. Some stores have already been closed or are slated for closure, according to a Sinn GmbH spokesperson.
P&C Düsseldorf operates around 70 locations in Germany. Recently, in autumn 2023, the company emerged from insolvency proceedings. It should be noted that this fashion retailer, which also owns the Anson’s chain, is separate from Peek & Cloppenburg Hamburg, a different entity altogether.
Competition Assessment and Consumer Impact
The Bundeskartellamt’s assessment focused on the competitive landscape and potential impact on consumers. The authority concluded that P&C’s acquisition of Sinn would not significantly lessen competition in the market.
Andreas Mundt explained, "Even after the merger, there will still be a sufficient number of competing providers in the relevant markets. Consumers will therefore continue to benefit from a wide range of textile products and competitive prices."
Outlook and Next Steps
The decision by the Bundeskartellamt represents a significant step in the proposed acquisition. However, the final outcome and completion of the transaction hinge on the upcoming creditors’ meeting and the approval of the insolvency plan.
The acquisition, if successful, would bolster P&C’s position as a leading player in the German textile retail market. The integration of Sinn’s locations and potential synergies could further enhance P&C’s competitiveness and service offerings.
Consumers will be closely monitoring developments to assess the impact on their shopping options and the availability of textile products in their respective regions.
