The association of the Austrian sports retailer community, Zentrasport Österreich e. Gen., is reporting that due to full warehouses as well as the payment default of one major retailer, the liquidity of the cooperative has been significantly strained and restructuring measures had to be initiated. Only Zentrasport Österreich itself is affected by this – the 229 Sport 2000 retailers with 367 doors throughout Austria are independent contractors who are not impacted by the restructuring process and will continue to operate their businesses as usual.
“The current situation is very challenging for us as a cooperative,” said Dr. Holger Schwarting, CEO Sport 2000 Austria. “Together with the Management Board and Supervisory Board, as well as the banks, we have been intensively looking for financing solutions in recent weeks in order to overcome the liquidity bottleneck. Unfortunately, we have not been able to do this on our own. Now we have reached a point where, in our responsibility as the Board of Management, we have to apply for judicial reorganization proceedings for Zentrasport Österreich e.Gen. The application for the reorganization proceedings is planned for the next few days. I deeply regret this step, especially in view of the general economic development of Zentrasport in recent years. However, it is legally necessary in order to secure our community for the future and to restore liquidity.”
Despite growth: Industry problems also affect the Sport 2000 community
With a focus on a consistent quality and specialization strategy, Sport 2000’s specialty retailer community has grown steadily over the past 12 years. The restructuring proceedings that have now been filed were filed despite solid sales growth of around 10 percent in the first half of 2023 (compared to the previous year). Supply chain bottlenecks and changing buying patterns led to overstocked warehouses as well as payment delays at some retailers. These developments increasingly strained the liquidity of the cooperative during the year. The default of a major retailer finally overstretched capacities. Collateral such as retention of title, bank guarantees and liens to secure outstanding receivables could not be realized quickly enough. Banks are reacting cautiously in the current economic environment.
Talks are currently underway with employees, the works council, banks, suppliers and partners. “We will do everything possible to restructure Zentrasport and reposition it in the best possible and sustainable way for a successful future in the Austrian sports retail sector. How these changes will look concretely for our team in Ohlsdorf, our warehouse in Regau and for our dealers, we can not say at the moment. What we can say: Currently, there are good talks regarding cooperation with the ANWR Group. This option is being intensively examined,” said Schwarting about the future.
Moving closer with German ANWR Group
ANWR Group eG, with its headquarters in Mainhausen, Germany, is one of the most successful and highest-turnover retail cooperatives in Europe. The group, which includes the German Sport 2000 GmbH, regrets the development of the economic situation of Zentrasport in Austria but emphasizes that they are absolutely convinced of the performance strength of the team around Schwarting and the relevance of Sport 2000 for the Austrian market. It has a very strong interest in the continuation of the business and the successful further development of the Austrian Sport 2000 dealers. For this reason, the possibilities of jointly shaping the future and placing it on a stable economic foundation in the long term are currently being examined.
A first step will be taken with the takeover of the central settlement business for the affiliated retailers by ANWR Group’s DZB Bank GmbH on Aug. 1, 2023. This option is already being used by most industry partners in cooperation with other associations. With a total central settlement volume of over €21 billion, DZB Bank cooperates with more than 80 associations in Germany and abroad and is one of the largest financial service providers in the trade in Europe. In this way, it enables payments to be made punctually and reliably and eliminates the risk of non-payment for both retailers and the industry.
Unchanged from the restructuring is Sport 2000 Austria’s long-term strategy with a clear focus on brand, quality, consulting and specialization.
“At the end of the day, like so much in business, a successful turnaround is also a team effort. So every bit of support from our community of retailers, employees, suppliers and partners counts now,” commented Schwarting, relying on solidarity and togetherness in the sports retailer community to overcome the current situation and ensure the cooperative’s successful continuation.
