Major โขBakery Chain โคfiles for Insolvency,โ 40 Branches Affected
Berlin โค- A meaningful German bakery chain is navigatingโฃ insolvency proceedings, impacting approximately 40 โbranches nationwide. The company, seeking tooโฃ restructure amidst rising costsโ and shifting consumer demand, has initiated self-management-a legallyโข protected process allowing continued operations while a turnaround plan is developed.
the bakery sector, especially energy-intensive operations like โฃthis 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 materialโ costs for staples like flour, sugar, and butter, and a decline in customer traffic-have โคproven insurmountable for a growing number of establishments. according to the German Bakers’ Confederation (Zentralverband des deutschen Bรคckerhandwerks), over 300 smallerโ and medium-sized bakeries have already closed their doors in 2024 alone.
Company CEO Nils Leifert affirmed that all existing branches will remain open andโ continue to offer theโฃ established product range. Employee wages โขare currently secured โฃthrough insolvency benefits.
“Self-administration provides companies with another opportunity to โขimplement a sustainable โคrestructuring of the business,” explains Thomas Klรถckner, a restructuring lawyer โคand insolvency expert withโข LECON. “Though, success hinges on earlyโฃ preparation โand initiating the โprocess promptly, ideally with theโ guidance โof an experienced restructuring professional. Otherwise, a follow-up insolvency and,โ often, the ultimate closure of the business looms.” Klรถckner, also a board member of the Frankfurt-based “Forum270” association focused on self-administration, emphasizes theโ critical need for proactive measures.
Thomas Klรถckner (52) is a lawyer, restructuring expert, insolvency administrator, and part ofโ 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 Obligationโค in Self-Administration”โ association in Frankfurt.
