Palmers Lingerie Files for Bankruptcy After Sales Decline adn Mask Scandal
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A challenging financial year, marked by declining sales and fallout from a controversial mask venture, has led to the bankruptcy of Austrian lingerie retailer Palmers. The company recorded a loss of EUR 35.7 million in the 2024/25 financial year, culminating in a February 2025 bankruptcy filing.
Sales Slump and Mounting Losses
Palmers experienced a 3.8 percent decrease in sales between February 2024 and January 2025,with revenue totaling approximately 64 million euros. The majority of this revenue – 57.5 million euros – originated from domestic sales. This downturn followed an already challenging 2023/24 financial year, where the company reported an annual deficit of 14.7 million euros. Including prior losses, the total net loss for the 24/25 financial year reached nearly 47 million euros.
Did you know? – Palmers’ financial struggles began before the 2024/25 fiscal year. The company’s losses in the prior year, coupled with the recent downturn, created a notable financial burden.Domestic sales accounted for the majority of the company’s revenue.
The Hygiene Austria Controversy
The financial woes of Palmers were substantially compounded by a scandal surrounding Hygiene Austria, a joint venture between the lingerie manufacturer and a textile company. Hygiene Austria, a producer of FFP2 masks during the COVID-19 pandemic, faced scrutiny and ultimately filed for bankruptcy in early 2024. This collapse had a ripple effect, directly contributing to the financial instability of Palmers.
Reader question: – How did the Hygiene Austria scandal impact Palmers’ reputation and sales? What specific actions or decisions led to the joint venture’s downfall? Share your thoughts in the comments.
Restructuring and Workforce Impact
As part of the bankruptcy proceedings, Palmers announced the closure of approximately 50 branches, impacting over 100 employees. Several franchise agreements were also terminated. Prior to the bankruptcy, the company employed an average of 425 peopel annually during the 24/25 financial year, a number that decreased to 345 employees by May.
In June, a potential lifeline emerged with the proclamation of a takeover by Danish women’s underwear manufacturer Change of Scandinavia. Under the new ownership, Palmers will rebrand as “Change Lingerie” in international markets. however, the six Change Lingerie locations currently operating in Austria will be converted into Palmers branches.
Pro tip: – The acquisition by Change of Scandinavia offers a chance for Palmers to revitalize. The rebranding and conversion of stores suggest a strategic shift. Keep an eye on how the brand adapts to the new ownership.
Future Outlook
Despite the restructuring, a senior official stated in September that no further branch closures were currently planned. The future of the Palmers brand remains uncertain, but the acquisition by Change of Scandinavia offers a path toward potential revitalization and continued operation in it’s domestic market.
