In the midst of the coronavirus crisis, the stricken Chain of restaurants Vapiano SE at District Court Cologne an application to open a Bankruptcy proceedings because of Insolvency put. The board of the Vapiano SE decided, the company said late Wednesday night Cologne With. At the same time, it is being examined whether bankruptcy applications have to be made for subsidiaries of the Vapiano Group.
All through the Vapiano SE-operated restaurants remained closed until further notice due to the Corona crisis, it was said. German and international franchisees are from the insolvency of the Vapiano SE not directly affected. The Vapiano SE operates 230 restaurants worldwide, in Germany 55.
The company had already announced on March 20 that it was insolvent and said that this had occurred due to the drastic drop in sales and earnings. At the same time, the company had an “urgent appeal to the Federal government for the rapid implementation of economic aid in the Covid 19 crisis ”. The board hoped to be able to turn away the bankruptcy application offered within a period of three weeks.
Since then, however, no solution has been found for the liquidity requirement, which has recently increased significantly due to the Covid 19 crisis and totaled an additional 36.7 million euros Vapiano now with. “In particular, no conclusive agreement could be reached with the financing banks and key shareholders on the contributions to the comprehensive financing solution that was aimed for,” wrote CFO Lutz Scharpe in the mandatory notification for the stock exchanges.
No application possible
In the absence of an agreement on such a financing solution, the prospective funding from Covid 19 state support programs could not have been applied for.
The Federal government among other things had decided on an unlimited loan program to ensure the liquidity of the companies in the Corona crisis. However, not every company Emergency loans granted, since the banks through which the loans are granted partly bear the risk themselves.
Therefore, there is currently a debate about whether the federal government should give a 100 percent guarantee on aid loans. On the one hand, money could flow faster and more comprehensively with less complex checks. On the other hand, the risks for the tax authorities increase without detailed checks. The state could then also stand for companies that would be in trouble without the corona crisis.
In any case, that applies Vapiano to. The Chain of restaurants Lately had to show severe losses, even a slimmed-down menu card or new order terminals did not bring the hoped-for turn. The chain has been in the red for a long time. In the first three quarters of 2019, the only listed company in Germany Chain of restaurants already made a loss of 46.1 million euros, significantly more than a year earlier (minus 29.4 million euros).
Expansion too brisk
The chain’s business flourished for years, but the company took over as it expanded. Many new restaurants became loss-makers. In addition, competitors like L’Osteria became stronger – this chain relies on table service Vapiano on the other hand, guests have to order and pick up their own food at the counter.