FRANKFURT, March 3 (Reuters) - German men’s clothing retailer Pohland has filed for insolvency after its banks cancelled outstanding credit lines, the company said on Tuesday.
The company added four outlets last year, adding costs just as the global economic crisis deepened. The business will continue operating while its management works on a restructuring plan.
The company, founded in 1958, generated sales of 44.5 million euros ($56.28 million) last year. It has 12 outlets with 343 employees.
Last month, owner Aurelius (AR4G.DE) said Pohland’s financing was no longer secured after sales had dropped in recent months. Aurelius bought Pohland from perfume shop operator Douglas Holding DOHG.DE in 2007.
Pohland joins the ranks of other insolvent retailers in Germany including former Karstadt AROG.DE units Wehmeyer and SinnLeffers. (Reporting by Alexander Huebner, Writing by Maria Sheahan)