Kitchen furniture manufacturer Neue Alno has applied for preliminary insolvency proceedings, according to reports in the German press.
Reports state joint managing directors Michael Spadinger and Jochen Braun filed preliminary insolvency proceedings, to go into self-administration, at the Hechingen District Court on July 2.
Neue Alno was granted the request to proceed with preliminary insolvency proceedings by the court on July 5.
This is despite Neue Alno reporting it has achieved its “intermediate” growth goals and announced it is seeking a future owner or co-investor.
It means business as usual for the manufacturer, which arranged the proceedings to help it navigate through the Corona crisis.
Investor Riverrock acquired the Alno AG business in 2017, for €20million, after it ceased trading
The sale of the kitchen furniture manufacturer included “significant assets” of machinery, land, as well as trademark rights.
In 2018, the mid-priced Alno kitchen furniture brand returned to the UK, supplied by Neue Alno.
Riverrock realigned Neue Alno and its team over the past two years and, despite the pandemic, has reported sales growth of 62% in 2020.
A statement provided the management team read: “Following German Law we had to file for a preliminary insolvency.
“Whenever a company is not able to fulfill 90% of the obligations for a three weeks period in the future – this is the legal step to take.
“Due to the fact that a landsale was signed but not yet paid we were in this situation.
“Additionally customers are currently paying late due to the challenges of COVID. Suppliers are raising leadtimes which demands additional working capital.”