Shan GmbH: Successful restructuring and business realignment

The company belonging to Berlin celebrity hairdresser Shan Rahimkhan filed for insolvency in February 2023. The local court of Charlottenburg initially appointed BBL partner Dr Florian Linkert as preliminary insolvency administrator, before confirming him as full insolvency administrator in May 2023. The company’s economic difficulties came about as a result of the Covid crisis, not least the drastic rise in costs, combined with a noticeable reduction in customers’ spending habits. Those investments made during the crisis failed to deliver a return, and changes in the market situation made an adjustment of the cost structure unavoidable.

The company was formed in 2005 by Shan Rahimkhan, and that same year it opened Berlin’s first concept store at Gendarmenmarkt, comprising a luxurious combination of hairdressing, food service and design, spread over an area of 800 square metres, that attracted attention both nationally and internationally. Following the Covid pandemic, Shan GmbH also opened a salon based on the shop-in-shop concept in the high-end department store KaDeWe.

Dr Florian Linkert and his team gained a comprehensive overview of the company’s situation and, working together with the management board, business operations were continued. Insolvency payments meant that the wages of the 56 staff members were secured up to April 2023. During this time, the company took advantage of the cost relief to ensure its future.

In December 2023, after seven months of unrestricted continued business operations, the proceedings were lifted following the creditors’ unanimous acceptance of BBL’s insolvency plan and its legally binding approval by the insolvency court. The successful restructuring was achieved through implementing a number of reorganisation measures. These included, in particular, closing the hairdressing salon and the Shan’s Kitchen restaurant at Gendarmenmarkt, which had become unprofitable due to the protracted construction activity ongoing in the area around Friedrichstraße and Gendarmenmarkt, resulting in a significant impact on the outdoor catering area, coupled with rental terms that were no longer sustainable. In addition, the business operation was realigned to meet the challenges of the future, with a focus on the salon in KaDeWe. During the proceedings, Shan GmbH was advised by law firm GÖRG.