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The financial difficulties of a German mechanical engineering company lead to bankruptcy. Over 500 employees are affected by the decision.
Heilbronn – The wave of bankruptcies of renowned and traditional companies in Germany does not seem to be easing. The bankruptcy of a heavyweight in the construction industry has caused a real shock. The tense situation even led to up to 30 bankruptcies in a single week. But there are always setbacks in other sectors too.
A well-known heating technology specialist and a German grocery chain, among others, had to file for bankruptcy. Now a global leader in its industry is also affected. The renowned mechanical engineering company from Germany had to file for bankruptcy in Heilbronn on Tuesday.
The future of the mechanical engineering company is still uncertain
The Heilbronn mechanical engineering company Illig is insolvent. The traditional company’s financial problems began during the Corona pandemic and led to financial bottlenecks. The company, which is one of the world market leaders in mechanical engineering for packaging and thermoforming, was forced to file an application for self-administration insolvency proceedings with the district court. The district court approved this application on Tuesday (April 9).
The Heilbronn mechanical engineering company Illig is insolvent. (Symbolic image) © IMAGO/Michael Bihlmayer
The future of Illig is still uncertain. One thing is certain, however: “The company should not be broken up. That’s clear,” said Michael Unser, the first representative of IG Metall Heilbronn-Neckarsulm, to the SWR. It is now crucial to find an investor and generate additional, fresh capital. The business is there, adds Unser.
The more than 500 employees at the headquarters in Heilbronn-Sontheim were informed about the bankruptcy filing on Tuesday. For the workforce, this means that operations will continue as normal for the time being – at least for the next three months.
Reason for the bankruptcy: “Customers’ reluctance to buy”
What happens next must now be worked out, says Unser. IG Metall wants to stand up for its employees and ensure that jobs can be secured for the future.
Michael Unser cites customers’ reluctance to buy and the difficult economic situation as reasons for the company, which was founded in 1946, to file for insolvency. Therefore, the 500 employees have no choice but to wait and see what happens next with the tool systems specialist. A situation that affects the employees of a traditional company Bayern which recently had to file for bankruptcy again.
Despite everything, the Heilbronn company relies on self-administration in the event of insolvency. The mechanical engineering company hopes to turn things around by restructuring and finding an investor.
2024-04-13 18:12:38
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