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.