Dark clouds over one of the large players on the German baking market. The company, which has been supplying fresh bakery products to residents of Mecklenburg-Vorpommern for four decades, has decided to file for bankruptcy.
See also: A new wave of bankruptcies and threatened prosperity. Germany is sounding the alarm
According to the Food Portal, Mecklenburger Backstuben GmbH, a bakery chain with over 40 years of tradition, filed for bankruptcy as part of the restructuring proceedings.
The bankruptcy of the bakery is another signal of the crisis in the food industry, which is struggling with rising costs. Financial problems affect even companies with many years of tradition, which shows how difficult the current economic situation is.
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The company filed for bankruptcy under the so-called restructuring proceedings in the District Court in Neubrandenburg. This is a form of restructuring that allows companies to continue operating under the supervision of an administrator.
Germany. A well-known bakery chain declares bankruptcy after 40 years of operation
The chain, which has 55 outlets, has already struggled with problems – at the beginning of the year, 50 people were dismissed from the frozen food production department.
As Nils Krause, a lawyer representing Mecklenburger Backstuben, points out in an interview with the “Bild” daily, the combination of several factors: a drastic increase in staff costs, skyrocketing energy prices and expensive raw materials would mean price increases for customers.
The latest analyzes by the insurer Alianze Trade show that large bankruptcies are becoming more and more common in Germany
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“The price of bread has a limit after which consumers stop buying it,” the lawyer explained.
For now, the chain's stores remain open and employees' salaries are secured from the state bankruptcy benefits fund until January. The management board hopes that restructuring will allow the company to overcome the crisis.
Another bankruptcy on the market. What's next for employees?
The company's management itself remains cautiously optimistic. As Portal Spożywczy explains, the restructuring plan assumes the optimization of costs and processes, which is intended to help avoid further layoffs.
See also: I saw with my own eyes what the “doom loop” looks like in the USA. They even closed McDonald's
The problems of Mecklenburger Backstuben are another example of the difficulties facing the food industry in Germany and Europe. The rising costs of energy, raw materials and labor call into question the future of many companies, even those with an established position on the market.
Bankruptcy after bankruptcy in Germany. The situation is reminiscent of the pandemic
Germany is facing serious economic challenges. The latest data indicate an increase in the number of large bankruptcies, and at the same time the labor market is struggling with a shortage of qualified specialists. Experts warn that these problems could threaten German prosperity.
According to Maxime Lemerle, a bankruptcy expert from Allianz Trade, 2023 will bring a wave of large bankruptcies, similar to the level of 2020. German citizens are forced to manage their finances more and more carefully. In the face of growing economic problems, they analyze prices more carefully before deciding to spend.
