Spanish brand Munich refinances over 18 million euros of debt

Madrid – Munich, the iconic Barcelona-based footwear brand owned by the Berneda family, appears to have found some initial relief from its difficult financial situation. The company has successfully reached an agreement with its financial creditors. It has reportedly agreed on a new payment schedule for a debt of just over 18 million euros (20.50 million dollars).

The Barcelona-based company has not yet made any official announcement about the agreement. Furthermore, reports with minor contradictory details have emerged, differing from one version to another. However, all indications suggest that Munich has successfully agreed on a financial restructuring plan with its main group of banking creditors. According to local generalist newspaper La Vanguardia and business publication El Economista on Wednesday, September 23, 2026, these entities include CaixaBank and Banco Santander. Each holds approximately 26 percent of the company's debt. The remaining liabilities are shared among Banco Sabadell, Bankinter and Ibercaja.

Details of the operation have emerged from financial sources close to the Barcelona-based company. Munich's management has reportedly agreed to a new payment schedule for the debt of just over 18 million euros owed to the various entities in its banking pool. For this restructuring, the parties were advised by the global firm Interpath. Munich was advised during the process by the law firms Rusell Bedford and Garrigues, while the banking entities were advised by Ramón y Cajal. The result is an adjustment plan for the full repayment of the debt. This will allow Munich to meet its obligations over periods of up to 10 to 12 years. This new payment schedule gives the historic Barcelona-based company breathing room. It can now refocus its attention and energy on reactivating and boosting the growth of its business model. The agreement was reportedly secured by guaranteeing the debt with various company properties and the holding company that owns the rights to the Munich brand.

Closure of 15 stores and redundancy of 45 employees

The agreement between Munich's management and its financial creditors follows months of negotiations. The company is currently run by brothers Xavier and David Berneda, members of the third generation of the founding family of the business, which dates back to 1939. Initial reports about these talks began to emerge in early March. Following this agreement, the process is expected to conclude with the submission of the deal to the courts for judicial approval.

During this process, the company's operations were affected by the delayed agreement with its financial creditors. In early August, Munich announced it had no alternative but to initiate a collective redundancy procedure, affecting 65 employees and leading to the closure of 15 stores. The adjustment to its retail network still involves the same number of stores. However, the number of affected employees was reduced after the company agreed with its staff in mid-August to lower the number of redundancies from 65 to 45.

Regarding the impact on employment, the collective redundancy procedure was agreed with 20 fewer employees affected than initially planned. They were excluded from the adjustment plan after the company agreed to cancel the procedure's application in four of the brand's stores in Barcelona, Madrid and San Sebastián. For the remaining affected employees, whose contracts were terminated effective August 16, severance packages were agreed. These included 26 days' pay per year of service with a maximum of 12 months' salary; 28 days' pay per year of service for those over 55; and 30 days' pay per year of service for employees with two or more years of seniority.

Secondly, regarding its retail network, the planned closures of the 15 Munich stores in Spain were announced to take place as lease agreements for the designated stores expire. These closures have focused on stores that were already underperforming or falling below the company's expectations. Through these closures, the company aims to reorganise its retail network. Munich currently operates a total of 36 branded points of sale in the country, including 25 stores and 11 corners in El Corte Inglés department stores. The goal is to create a more resilient retail network prepared to contribute to Munich's next phase of growth. The company forecast to close its last financial year of 2025 with revenues of around 70 million euros. This represents a 14.63 percent decrease compared to the 82 million euros at the close of the 2024 financial year, which had seen a 9 percent increase on 2023.