Insolvency for trading arm of textiles wholesaler and retailer

Wetherby-headquartered textiles wholesaler and retailer, Leeds Group, says consumer confidence has been further damaged by the Ukraine war, meaning one of its trading companies has been forced into insolvency.

The business’s trading operations are conducted by Germany-based Hemmers-Itex Textil Import Export GmbH and Hemmers’ subsidiary Stoff-Ideen-KMR GmbH (KMR).

Leeds Group explains continuing uncertainty in global markets and the impact on the German economy has deepened, resulting in local management reviewing the options of both trading companies to ensure the group can handle the challenges.

The group adds KMR has continued to make losses in the current financial year and, following an independent review, Hemmers management have decided the KMR business is unsustainable. They have today placed KMR into an insolvency process.  

The insolvency administrator will control and operate KMR to realise its assets in order to pay any outstanding creditors.

For the year ended 31 May 2021, audited revenue for KMR accounted for £5.3m which made up about 16% of the company’s overall revenue, while Hemmers revenue accounted for £27.7m, about 84% of the company’s overall revenue in the same year.

A Leeds Group spokesman said: “The Hemmers management and Leeds Group directors are committed to ensuring that Hemmers returns to profitability and confirm that sales for the current year are in line with their expectations.”

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