MUNICH, March 4: Eterna, one of Germany’s best-known shirt and blouse manufacturers, is to close after 163 years.
The company, which is based in Passau in the south-eastern corner of Germany, will cease operations in the summer, the management announced on Tuesday.
Efforts had been made in recent months to save the company, but no buyer was found who wanted to take over the textile manufacturer in its entirety.
Founded in 1863, the company employs around 400 people at its Passau headquarters, according to the company website, and is primarily known for its business shirts.
Its main customers have traditionally been office workers and managers.
The company filed for insolvency in December and initially received more than 20 enquiries from potential investors. However, all of them eventually pulled out.
“Unfortunately, the continuation of Eterna’s business operations in Passau is ruled out,” the company’s management stated.
Only the company name “Eterna” will now be sold. This means that the brand could continue to exist, even if it would no longer have anything to do with the original company.
The management announced that the creditors’ committee has agreed to the planned closure by the middle of 2026, although they did not give an exact date.
Eterna was one of the few remaining traditional companies in the once flourishing German clothing industry but had been struggling with financial problems for a long time.
The company had already undergone reorganisation proceedings in 2021. The fashion business is generally difficult, both for the industry and for retailers.
The company was founded in Vienna, initially as a textile workshop and underwear factory. The current headquarters in Passau opened in 1927.
–BERNAMA-dpa