A German porcelain producer has filed for insolvency proceedings as it seeks to restructure its finances and secure the future of its production site.
The Gera District Court has appointed attorney Thomas Jacobs from law firm Brinkmann & Partner as provisional insolvency administrator for the company, Kahla/Thüringen Porzellan GmbH . Initial discussions have already taken place with Managing Director Daniel Jeschonowski and Works Council Chairman Stefan Schau, while the company's 120 employees were informed during a staff meeting.
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Despite the insolvency filing, the company said business operations will continue normally. Production, order processing and deliveries remain ongoing, and new orders are still being accepted and fulfilled.
According to the company, the insolvency application comes amid economic uncertainty in Germany. The latest trade fair and order season was significantly weaker than expected, while the hospitality sector, an important customer segment, has shown noticeable purchasing restraint. In addition, the company cited the weak German economy and rising energy costs as contributing factors.
Managing Director Jeschonowski said the company has made significant progress over the past five years in building its brand but will need stronger growth going forward.
Works Council Chairman Schau emphasised that employees are committed to maintaining production: "Insolvency is a difficult situation, but it also presents an opportunity to restructure the company. We want to show that this location has a future."
Source: www.moebelmarkt.de
