Corporate forms

Major ⁢Bakery Chain ⁤files for Insolvency,‌ 40 Branches Affected

Berlin ⁤- A meaningful German bakery chain is navigating⁣ insolvency proceedings, impacting approximately 40 ​branches nationwide. The company, seeking too⁣ restructure amidst rising costs‌ and shifting consumer demand, has initiated self-management-a legally⁢ protected process allowing continued operations while a turnaround plan is developed.

the bakery sector, especially energy-intensive operations like ⁣this one, has faced escalating challenges in recent years. while many businesses initially weathered the COVID-19 pandemic with state support, subsequent economic pressures-including soaring energy prices, increased raw material​ costs for staples like flour, sugar, and butter, and a decline in customer traffic-have ⁤proven insurmountable for a growing number of establishments. according to the German Bakers’ Confederation (Zentralverband des deutschen Bäckerhandwerks), over 300 smaller‍ and medium-sized bakeries have already closed their doors in 2024 alone.

Company CEO Nils Leifert affirmed that all existing branches will remain open and​ continue to offer the⁣ established product range. Employee wages ⁢are currently secured ⁣through insolvency benefits.

“Self-administration provides companies with another opportunity to ⁢implement a sustainable ⁤restructuring of the business,” explains Thomas Klöckner, a restructuring lawyer ⁤and insolvency expert with⁢ LECON. “Though, success hinges on early⁣ preparation ‍and initiating the ​process promptly, ideally with the‌ guidance ‌of an experienced restructuring professional. Otherwise, a follow-up insolvency and,​ often, the ultimate closure of the business looms.” Klöckner, also a board member of the Frankfurt-based “Forum270” association focused on self-administration, emphasizes the​ critical need for proactive measures.

Thomas Klöckner (52) is a lawyer, restructuring expert, insolvency administrator, and part of‌ the Munich-based crisis management team LECON. His areas of expertise include self-administration,restructuring concepts,and insolvency plans.He also serves on the board of the “Forum270, Quality and Obligation⁤ in Self-Administration”‌ association in Frankfurt.