Traditional company Menrad in Schwäbisch Gmünd: 100 dismissals after bankruptcy!

Traditional company Menrad in Schwäbisch Gmünd: 100 dismissals after bankruptcy!

In a sad chapter in the company's history, the traditional family company Menrad, which was founded in 1896, filed for bankruptcy on March 31, 2025. This decision is particularly affected by the headquarters in Schwäbisch Gmünd, where 100 employees have received their termination. The decision to close it was not easy, but liquidity problems and declining order and sales development have finally escalated the situation. Insolvency administrator Florian Zistler was commissioned to set the course for possible renovation, but this was not possible. On May 28, 2025, the employees were informed about the closure, which no longer offers a perspective, except for 10 sales representatives who could possibly be taken over by an investor. High costs and the lack of suitable investors ultimately led to this sad decision.

Menrad has made a name for itself in the eyewear industry over the years and works with well-known brands such as Joop, Ted Baker and Scotch & Soda. The location in Schwäbisch Gmünd houses the administration, German sales and global logistics, while the pressure on the brand has increased significantly due to the lack of financial support and the effects of the Corona Lockdowns 2020. A social plan was negotiated in cooperation with the works council in order to cushion the consequences of the massive dismissals and to offer the affected employees some support.

The reasons for the crisis

as from the reports of the Gmünder Daily Post is not the only family business that is under pressure in this market economy. The insolvency risk of family businesses is significantly higher than with large public companies, which is clearly reflected in Menrad's bankruptcy. According to Dub , family companies often have difficulty winning what their capital base diminishes.

The lack of willingness to recording the capital in the past led to many family businesses in trouble without having the necessary financial resources available. In the case of Menrad, the high costs and a financing gap have also proven to be massive inhibitors. So the wages and salaries were allowed to be covered by bankruptcy money by the end of May, but this is not a solution for long -term problems.

The future of the brand

A ray of hope could possibly result from the negotiations with investors who at least show interest in Menrad's trademark rights. These conversations are considered positive and could help the traditional brand, even if the entire company is not adopted in its previous form. Menrad thus looks at an uncertain future in which the maintenance of the brand is in the foreground. The hope of a possible continuation of the brand remains, even if the location in Schwäbisch has to close Gmünd.