The insolvent shirt and blouse manufacturer Eterna will cease operations at its headquarters in Passau by summer 2026. The company filed for insolvency last December and subsequently sought a buyer. However, no investor was found in the following months willing to take over Eterna completely. This marks the definitive end of the rescue attempt. Management has stated that continuing operations at the Passau location is out of the question. According to the company, approximately 400 employees are affected. This brings to a close the production of one of Germany’s best-known business shirt providers after 163 years of company history. (ntv: 03.03.26)
No buyer despite numerous inquiries
Following the insolvency filing, more than 20 potential investors initially expressed interest, but ultimately every interested party withdrew. Management therefore stated that continuing operations in Passau was “unfortunately out of the question.” At the same time, management announced that the initiated sales process had been terminated without result. This leaves only an orderly liquidation, while the search for a comprehensive solution has effectively ended.
Eterna was long one of the few remaining traditional brands in the German clothing industry, but had been struggling with financial problems for years. The company had already undergone restructuring proceedings in 2021. Despite this, the business did not stabilize permanently, as the fashion market as a whole is considered challenging. This affects both manufacturers and retailers, and price negotiation margins are shrinking in many segments.
Liquidation approved – brand to be sold separately
The creditors’ committee approved the planned closure by summer 2026, but management did not specify a concrete date. This means that the Passau location will cease operations in the coming months while liquidation is prepared. For the workforce, this means planning under uncertainty, and the question of alternative employment opportunities in the region is becoming increasingly important.
According to management, only the company name “Eterna” is now up for sale. This would allow the brand to continue, but without any connection to the original company or the Passau location. A buyer could therefore use the name for new structures, while production and employment at the current site would nevertheless cease.
163 Years of History Between Vienna and Passau
Eterna was founded in Vienna in 1863, initially as a textile workshop and linen factory. The current headquarters in Passau were established later, with the company opening the location there in 1927. From Passau, Eterna developed into a well-known name for business shirts and blouses, primarily purchased by office workers and managers. Now, this era at the Passau location is coming to an end, although the brand name may survive.