Hammer Facing Closure: Liquidation Sales & 1100 Jobs at Risk
Hammer Facing Liquidation Sales After Insolvency
The large furniture chain Hammer is being forced into liquidation sales at many of its locations as it struggles with severe financial difficulties. Approximately 1,100 employees face job uncertainty as the company navigates a complex insolvency process. The situation stems from the insolvency of Brüder Schlau Gruppe, Hammer’s parent company, in June 2025, and has been further complicated by the subsequent insolvency proceedings of Hammer Raumstylisten GmbH, which had taken over the furniture stores.
Immediate Liquidation Sales Initiated
According to preliminary insolvency administrator Stefan Meyer of the Pluta law firm, liquidation sales have begun in many of the 87 Hammer stores, starting the week of March 16, 2026. This action is necessary because no investor has been found to continue operating the Hammer store concept for roughly half of the locations. The goal is to free up these spaces for other businesses. Reports indicate that 44 of the 87 Hammer stores are slated to close by the end of March or early April.
The Brüder Schlau Gruppe Insolvency
The current crisis began when the Brüder Schlau Gruppe, which owned Hammer, filed for insolvency in June 2025. Prior to the insolvency, the group had reportedly sold properties worth around 50 million euros in an attempt to maintain liquidity, as reported by WDR. Following this, Hammer Raumstylisten GmbH, the newly formed company that took over the furniture stores, similarly entered preliminary insolvency proceedings. The situation highlights the challenges facing large retail chains in the current economic climate.
What the Insolvency Process Entails
Insolvency proceedings, generally, involve a court-appointed administrator taking control of a company’s assets and attempting to either restructure the business or liquidate its assets to pay off creditors. A key step is assessing whether a buyer can be found to continue operating the business as a going concern. If no buyer emerges, liquidation – selling off assets – becomes the most likely outcome. The process is designed to ensure a fair distribution of funds to those owed money by the insolvent company.
Impact on Employees
The immediate impact of the liquidation sales is the uncertainty faced by Hammer’s 1,100 employees. Their wages and salaries are currently secured through insolvency benefits from the Federal Employment Agency until the end of March. The insolvency administrator is attempting to find solutions to preserve as many jobs as possible, potentially through the transfer of locations to other businesses. While, the future remains uncertain for many workers.
Current Sales and Discounts
Currently, the 87 Hammer stores are offering sales of up to 50% on existing inventory, likely as part of the liquidation process. Customers can find information about sales at individual locations on the Hammer website. The discounts are intended to clear out merchandise quickly to facilitate the closure of affected stores.
Looking Ahead: Potential Outcomes
The insolvency administrator is actively seeking potential buyers for the Hammer business. Two parties have expressed interest in continuing the Hammer store concept, albeit with a reduced number of locations. Four other potential buyers are interested in acquiring the properties for their own business concepts, potentially offering employment opportunities to some Hammer employees. The administrator, Stefan Meyer, stated, according to regionalheute.de, that all possible avenues are being explored to find a continuation solution or, at the remarkably least, to preserve as many jobs as possible, even if under different ownership and concepts.