March 10, 2021 – 8:51 pm Clock
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Rothenburg ob der Tauber (dpa / lby) – The manufacturer and dealer of Christmas decorations in Germany, Käthe Wohlfahrt, has been saved for the time being: the insolvency plan for the company is in place. In the protective shield proceedings over the assets of the traditional company, the creditors almost unanimously agreed to the insolvency plan on Wednesday, as the trustee announced in the evening. The judicial proceedings are thus close to being concluded after just under three months.
This clears the way for the Wohlfahrt family to continue business operations, who continue to hold 100 percent of the shares. The redevelopment concept includes the closure of six of the 22 stores in Germany. Käthe Wohlfahrt will continue operating the year-round Christmas worlds in Berlin, Oberammergau, Heidelberg, Rüdesheim, Nuremberg, Bamberg and above all in Rothenburg ob der Tauber with the world-famous Christmas village and the German Christmas Museum. The company had to part with around 20 of the 280 employees.
The restructuring measures also include streamlining the product range and increasing sales in its own e-commerce and platform business. The international locations in Great Britain, Spain, France, Belgium and the USA as well as seasonal sales at national and international Christmas markets will be held.
The insolvency plan provides for a total insolvency rate of 37 percent for the creditors. According to reports, this is well above other insolvency rates, which often only provide for three percent.
The trustee, lawyer Volker Böhm, spoke of a very good result for everyone involved. “The creditors will receive an above-average quota payment, business operations will continue and the traditional company Käthe Wohlfahrt will be retained. This is good news, especially for the approximately 280 employees and contract partners.”
The reason for the crisis at the company with its shops, which are also popular with tourists, was the corona pandemic. For example, Christmas markets have almost completely failed, and there was no international tourism. The associated uncertainties were the trigger for the initiation of the judicial restructuring proceedings. At the beginning of December there was talk of sales losses in the millions.
The family business, founded in 1964, usually sells nativity figurines, tree decorations and nutcrackers at 60 Christmas markets in Germany and abroad. After the cancellation of the markets, sales over the Internet had increased by 80 percent, but that could not even begin to compensate for the losses.
Protective shield proceedings are a special feature of German insolvency law. The procedure can be carried out in self-administration; a recovery plan must be submitted quickly. The prerequisite is the general prospect of restructuring the company, and the company must still be solvent.
© dpa-infocom, dpa: 210310-99-769883 / 3
Source: DPA
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