Adler Modemärkte : REACHES KEY MILESTONE IN RESTRUCTURING

Press information

on Adler Modemärkte AG

Creditors agree to insolvency plan

ADLER reaches key milestone in restructuring

Over 2,600 jobs and more than 130 locations saved after investor concept implemented

Haibach, near Aschaffenburg, 28 July 2021 - With the unanimous approval of the insolvency plan at the debate and voting session in court, the insolvency creditors of Adler Modemärkte AG have laid the key milestones for the restructuring of the fashion retailer. The Aschaffenburg Local Court confirmed the insolvency plan, which can now be implemented. The aim is to end the insolvency proceedings, which commenced on 1 July 2021, under own management by the end of August this year.

The insolvency plan sets out all financial and operational restructuring measures for the company on the basis of the concept presented by the investor Zeitfracht Logistik Holding GmbH, Berlin. The company had previously accepted Zeitfracht's offer to reach an investor agreement, after the creditors' committee expressed its support for the deal. Antitrust approval has already been granted to finalise the investor agreement with Zeitfracht Logistik Holding GmbH.

The insolvency plan would write off company debt and keep over 100 fashion stores open in Germany and 29 abroad (Austria: 24, Luxembourg: 3, Switzerland: 2). Through the planned repositioning more than 2,600 jobs can be saved.

The restructuring of ADLER will be headed by Adler Modemärkte AG's existing Management Board, led by CEO Thomas Freude. Zeitfracht managing directors Melody Harris-Jensbach and Wolfram Simon- Schröter will also provide support in an advisory capacity.

Under the insolvency plan, insolvency creditors will be able to expect payment on a considerable share of their claims.

The insolvency plan for financial restructuring of the company also includes reducing capital by decreasing Adler Modemärkte AG's share capital to zero and then injecting new equity as part of a capital increase by the investor Zeitfracht, who then becomes ADLER's sole shareholder. Existing shareholders will leave the company as part of this process. Shares in the company will also be delisted when the capital reduction to zero takes effect.

"ADLER is saved! Approval from creditors secures the jobs of over 2,600 of our great employees and ensures the survival of over 130 locations. Considering the exceptionally tough conditions experienced since the beginning of the year, this is a great success," commented Thomas Freude, the company CEO.

Dr Christian Gerloff, a lawyer and authorised representative of Adler Modemärkte AG, added, "ADLER is a prime example of a company that has found its existence threatened through no fault of its own as a result of the turbulence caused by the pandemic. So I am all the more delighted that, thanks to the excellent cooperation of everyone involved and the agreement by creditors today, the company can continue its successful course that it enjoyed before the pandemic. I would also like to express my special thanks for the excellent cooperation with the insolvency court in Aschaffenburg."

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Solicitor Tobias Wahl (Anchor law firm): "Not even seven months after the application was filed, ADLER's insolvency proceedings are now in the home stretch. This is all the more impressive considering the adverse conditions resulting from months of lockdown. The investor solution reached with Zeitfracht not only means that business operations can continue, it also partially satisfies creditor claims."

The debate and voting session on the insolvency plans at subsidiaries Adler Mode GmbH and Adler Orange GmbH & Co. KG also took place today. In both cases, creditors approved the plan.

High demand at ADLER fashion stores

A promising future for the company is bolstered by ongoing high customer demand at ADLER fashion stores, which reopened several weeks ago after the end of lockdown. Renewed marketing initiatives - which were scaled back dramatically during the coronavirus pandemic - are also having an increasingly positive effect.

Contact for press and investor relations at Adler Modemärkte AG:

Peter Dietz

Media and Investor Relations

Tel.: 069 - 97 12 47-33

Jasmin Dentz

Media and Investor Relations

Tel.: 069 - 97 12 47-31

E-mail:[e-mail]

About Adler Modemärkte AG:

Adler Modemärkte AG, based in Haibach near Aschaffenburg, is one of the largest and most significant textile retailers in Germany. ADLER employs around 3,100 people and operates 172 fashion stores, 142 of which are in Germany, 24 in Austria, three in Luxembourg, two in Switzerland and one online. The company focuses on large stores with sales areas of over 1,400 m2 and provides a wide range of goods with numerous own brands and selected external brands. Thanks to over 70 years of high customer loyalty, ADLER's own figures identify it as the market leader among the over 50s - a segment with significant purchasing power.

For more information seehttps://www.adlermode-unternehmen.com/en/;www.adlermode.com

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