Press Release from Adler Modemärkte AG

Opening of insolvency proceedings
ADLER submits insolvency plan and plans to conclude proceedings by the end of August 2021
Company accepts investor offer from Zeitfracht

Haibach (near Aschaffenburg), 2 July 2021 - With the filing of the insolvency plan at the Aschaffenburg local court, the decisive phase in the restructuring of Adler Modemärkte AG has begun. The insolvency plan defines all  financial measures for restructuring the company based on the concept submitted by the investor Zeitfracht Logistik Holding GmbH, Berlin. The company had previously accepted Zeitfracht's offer to conclude an investor agreement after the creditors' committee had expressed its support. On 1 July 2021 the Aschaffenburg Local Court opened insolvency proceedings in self-administration over the assets of Adler Modemärkte AG as planned. The company had previously filed for insolvency on 11 January 2021 due to the distortions in the wake of the Corona Lockdown. The execution of the investor agreement with Zeitfracht Logistik Holding GmbH is currently still subject to merger control approvals.

The insolvency plan provides for the debt relief of the company and the continuation of the operative business with more than 100 German and 29 foreign fashion stores (Austria 24, Luxembourg 3, Switzerland 2). The planned realignment is expected to preserve at least 2,600 of the Group's total of 3,100 jobs.

In addition, the insolvency plan includes a capital cut in the form of a reduction of Adler Modemärkte AG's share capital to zero and a subsequent injection of new equity in the form of a capital increase by the investor Zeitfracht, who will thereby become Adler's sole shareholder. Thus, the existing shares of the Company will in all likelihood become entirely worthless. When the capital reduction to zero takes effect, the Company's shares will be delisted at the same time.

The now upcoming realignment of ADLER will be implemented by the existing Executive Board of Adler Modemärkte AG under the leadership of CEO Thomas Freude. The insolvency plan is supposed to be presented to the creditors' meeting to be put to vote by the end of July 2021. Ideally, the company will be able to terminate the insolvency proceedings as early as the end of August 2021. From today's perspective, the payment of a recognisable quota on the claims of the insolvency creditors is possible.

"I am relieved that ADLER has good prospects for the future thanks to the investor agreement with Zeitfracht. The steps we have taken include a sustainable repositioning of the company," comments Thomas Freude, the company's CEO.

Attorney Dr Christian Gerloff, General Representative of Adler Modemärkte AG, adds: "The planned solution for the future was only possible thanks to the good cooperation between the management, the trustees, the creditors and the employees. Thanks are also due to the Economic Stabilisation Fund (Wirtschaftsstabilisierungsfond), which made a decisive contribution to bridging the very difficult last weeks of the lockdown with its loan in May."

Trustee Tobias Wahl (Anchor Rechtsanwaltsgesellschaft): "The implementation of the investor agreement with Zeitfracht would result in a substantial part of the jobs at ADLER being preserved. In view of the extremely difficult underlying conditions under which this process had to take place due to Covid-19 this is nothing to be taken for granted."

Positive customer response after reopening of all fashion shops
The reopening of all of ADLER's fashion shops after the end of the lockdown has been met with a positive response from ADLER's customers and high demand for the company's products. This demand is now to be supported by intensified marketing measures, which were scaled back considerably in the wake of the corona crisis.

Adler Modemärkte AG press enquiries and investor relations:

Peter Dietz                                                                               
Media und Investor Relations                                                    
Tel.: 069 - 97 12 47-33                                                             

Jasmin Dentz
Media und Investor Relations
Tel.: 069 - 97 12 47-31

E-mail:

About Adler Modemärkte AG:
Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2019, the Group generated revenue of €495.4 million and EBITDA of €70.3 million. ADLER employs a workforce of around 3,100 and operates 172 stores, 142 of which are located in Germany, 24 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m2 of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to more than 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 50 and over.

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