The closure of the plants in Witzenhausen and Hörselberg-Hainich near Eisenach was announced at a works meeting of engine supplier JD Norman (formerly Rege) on Thursday.
Witzenhausen – Despite intensive search, it was not possible to find an investor, according to a press release by the insolvency administrator Dr. Holger Leichtle from Schultze & Braun. Corona brought the plants to a standstill in March, and even if work resumed in April, the effects will continue to reverberate to this day, said Leichtle.
After the rumor had been going on for some time, it is now official: On Thursday, the insolvency administrator of the engine supplier announced JD Norman (formerly Rege), in a works meeting that both locations in Witzenhausen and Hörselberg-Hainich near Eisenach will be closed.
JD Norman closes plants in Witzenhausen and Hörselberg-Hainich
One of the reasons: the corona pandemic and its impact on industry. The closure affects around 150 employees in Witzenhausen and 450 employees in Hörselberg-Hainich, where a company meeting was held at the same time.
A good 80 of the Witzenhausen employees listened to the statements made by insolvency administrator Dr. Dirk Herzig from Schultze & Braun, who explained that there were “very intensive discussions” with potential investors from November to February. In addition, the bankruptcy administrators themselves prepared a restructuring sketch. In a press release, insolvency administrator Dr. Holger Leichtle from more than 550 national and international potential investors.
Bankruptcy of JD Norman: Closing plants
There were also discussions with the main customer VW about guaranteed sales volumes and a necessary price increase. According to the communication, the ideas could not be reconciled here. Originally, the continuing agreement to settle liabilities with VW was scheduled to end on July 31. However, Leichtle had succeeded in extending it until September 30. For employees, this means that they will be given notice of termination by September 30 in the coming days.
This also applies to employees who have a shorter notice period, Herzig said. They also receive their full vacation pay and a discount on their last salary. This is not common for other bankruptcy settlements. In addition, the insolvency administrator worked well with the employment agency and could, for example, submit unemployment reports for everyone. Heartily praised the commitment of the workforce, which had done a good job, even in times of crisis.
JD Norman insolvent: Closure of plants in Germany
“We still have hope,” said Works Council Chairman Werner Hiebenthal after the meeting. After all, there are two concepts: the workbench regulation, which opens production for other branches of industry, and the “management-by-out solution, in which staff members take over the management of the company (HNA reported). According to Hiebenthal, there are already approaches here, but no concrete concepts yet. Nevertheless, he is combative: “We will try to keep the location until the last day,” he says and “it will only be over when it is over”. After the insolvency proceedings opened in December 2019, JD Norman had initially announced that the business in Witzenhausen should continue.
–