Shock in the fashion world

Restructuring proceedings at design star Lena Hoschek

Lena Hoschek(Bild: Andreas Tischler)

She designs fantastically beautiful garments, one of her iconic ribbon skirts even hangs in the closet of Queen Maxima of the Netherlands. The following news therefore comes as a shock: Lena Hoschek is insolvent and on Tuesday initiated restructuring proceedings for her company at the Vienna Commercial Court.

"We did not take this decision lightly, but in view of the current challenges, we have reached a point where I, as a responsible entrepreneur, must apply for reorganization proceedings," a spokeswoman announced in a press release.

The reasons cited include drastically changed conditions such as the coronavirus pandemic, ongoing delivery difficulties and delays, which have significantly impacted the operating business.

Goal: continuation of the company
The creditors are being offered a 20 percent share, whereby the aim is clearly to continue the company as a going concern, the statement continues. The restructuring process is necessary to secure the long-term future of the company. The company is also burdened by legacy issues from the pandemic, deteriorating financing conditions and necessary advance payments.

Lena Hoschek GmbH was founded by the fashion designer in 2005 and has developed into a well-known Austrian fashion company. It operates boutiques in Vienna and Graz, has an international online store and supplies around 95 retail partners worldwide. The company employs around 60 people.

Hoschek emphasizes that the primary aim is to secure the future and jobs. A comprehensive restructuring concept has been developed and the company is optimistic that it can be stabilized and successfully continued in the long term.

Distinctive "slow fashion"
The high-priced brand stands for "slow fashion, female empowerment and an unmistakable design signature". The fashion is characterized by "high-quality craftsmanship, timeless design and sustainable production methods in Europe".

Hoschek's designs are strongly inspired by the 1950s and folkloristic influences. In addition to prêt-à-porter fashion, she also produces traditional costumes. She has regularly presented her collections at Berlin Fashion Week since 2010.