The district court of Hechingen has granted a request by kitchen furniture manufacturer Neue Alno to proceed with preliminary insolvency proceedings in self-administration.
The aim of the procedure is to manoeuvre the company through the Corona crisis, and to continue seeking an investor in the business.
Reports in the German press stated joint managing director Michael Spadinger and Jochen Braun filed proceedings at the count on July 2 and this was granted on July 5.
It means the management team remains “fully capable” of acting in the insolvency proceedings and will play a role in the financial restructuring.
Business operations, production and delivery to customers has continued as usual.
Based in Pfullendorf, Germany, the kitchen furniture manufacturer employs around 230 people.
A statement by the management team read: “We will tackle the challenges of the near future together with our employees, customers and partners.
“The aim is to get out of the proceedings and continue the ongoing investor process.”
Riverrock acquired the Alno AG business, which had ceased trading in 2017, for €20million.
The deal for Alno AG included machinery, land and trademark rights to the upper market kitchen furniture brand.
It returned to the UK in 2018 and was supplied through Neue Alno.
Riverrock had realigned Neue Alno and its team over the past two years and, despite the pandemic, has reported sales growth of 62% in 2020.
According to the company, it has established industry specialists and sales partners in all target markets and achieved its “intermediate” sales goal.