Regional Crisis: Hammer Stores Face Collapse After Months of Turmoil
Hammer's collapse nears as stores close and jobs vanish by 2026
The crisis at Hammer, the German home improvement and furnishings chain, has dragged on for months. After an apparent rescue from its first insolvency by Hammer Raumstylisten GmbH, fresh troubles soon emerged. Hopes were high that investors could secure the company's future, but so far, no viable solution has materialized—and survival now seems increasingly unlikely.
According to a press release issued Wednesday by the insolvency administrators, no binding investor agreement has yet been reached to save the nationwide chain, which specializes in interior design, home textiles, and renovation. The two most recent potential buyers in the merger and acquisition (M&A) process have withdrawn their non-binding offers and halted negotiations. While a new party has since submitted an indicative bid for the remaining operational stores, doubts persist about whether a deal can be finalized quickly enough to avert liquidation and shutdown. The late stage of their involvement, combined with the urgency of the situation, raises serious concerns. Separately, talks continue with industry outsiders interested in taking over certain locations and offering jobs to affected staff.
More Stores to Close as Liquidation Accelerates
Since early April 2026, Hammer has been conducting clearance sales at all remaining locations. By the end of March, 46 stores had already shut down and been returned to landlords. Currently, 41 outlets remain open for liquidation sales.
However, with stock levels now insufficient to sustain sales at all 41 locations—and no funds available to purchase new merchandise—another 20 stores will close by the end of April. The remaining 21 will continue clearance sales with steep discounts until the end of May 2026. Unless a last-minute investor emerges—an outcome that currently appears improbable—these final stores will also cease operations by late May, according to a statement from PLUTA Rechtsanwalts GmbH.
Wave of Layoffs Looms
To prepare for the shutdown, all employment contracts will be terminated in April 2026 with a maximum three-month notice period, following the necessary insolvency labor law procedures. Where no further work is available—such as at closed stores or the company's Porta Westfalica headquarters—employees will be placed on garden leave. Additionally, all store leases will be terminated at the end of April with the legally required three-month notice.
Stefan Meyer, the insolvency administrator and specialist lawyer for insolvency and restructuring at PLUTA, commented: "The current situation is deeply regrettable, especially given the tireless efforts of all involved to save Hammer. While optimism is fading, we will continue to pursue every possible avenue for a last-minute solution—negotiations remain ongoing. I would like to express my sincere gratitude to Hammer's employees for their outstanding dedication and hard work during the weeks and months I have served as interim insolvency administrator."
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