18.12.2025 07:50
Founded in 1863, the Germany-based ready-to-wear brand Eterna, which is also sold in Turkey, has filed for bankruptcy due to rising costs and declining demand. The company aims to restructure under a self-administration model under court supervision and continue its operations.
Founded in 1863, the Germany-based shirt and blouse manufacturer Eterna has filed for bankruptcy due to financial difficulties. The company's application was accepted by the Passau Local Court, and it was reported that the process would be conducted under court supervision.
In a statement made by Eterna's management, it was noted that rising production and operating costs, along with a contraction in market demand, forced the company into a comprehensive restructuring. It was expressed that the Covid-19 pandemic severely impacted the ready-to-wear retail sector, which is based on physical store networks, further weakening the company's already fragile profitability structure.
RECOVERY PROCESS DID NOT YIELD PERMANENT RESULTS
It was recorded that the recovery process initiated by the company in 2021 under the Companies Stability and Restructuring Law did not yield permanent results. Eterna aims to manage the restructuring process under court supervision by opting for a self-administration model instead of a classic bankruptcy procedure, without the appointment of an external trustee. In this context, it was stated that negotiations would be held with creditors, and the aim is to continue company operations and protect as many of the approximately 900 employees as possible.
MANAGEMENT CHANGES NEGATIVELY AFFECTED
It was stated that management changes also played a role in the process the company experienced. It was reported that CEO Christian Bregovac, who started his position in January 2025, left shortly after, and the operational management is still being carried out by CSO Dirk Heper and CFO Herbert Oelke.
Industry analysts point out that the crisis Eterna is experiencing is not an isolated case. The decline in physical store sales, the rise of online brands, and the increasing pressure from companies offering low-priced products are considered to have deepened the structural problems in the ready-to-wear sector.