German kitchen manufacturer Warendorf Küchenfabrik GmbH is set to restructure under insolvency proceedings.
The Local Court of Münster ordered provisional insolvency proceedings and appointed Stefan Meyer from Pluta Rechtsanwalts GmbH as provisional administrator.
Together with management, the adminstrator will hold discussions with customers and business partners, as its 100 employees have already been informed.
According to Pluta, the first step of the administrator will be to stabilise the business, then the long-term prospects for the company’s survival will be reviewed.
Pluta restructuring expert Stefan Meyer said, “The business will continue operating. We will now analyse all existing orders as quickly as possible.
“Following an initial assessment, we will then contact customers to inform them about the next steps.”
Stefan Meyer is being supported by attorneys Christoph Chrobok and Ria Brüninghoff.
Warendorf Die Kuche GmBH filed an application for insolvency proceedings in March 2019.
The company was acquired by a unnamed Chinese investor in July 20 and titled Warendorf Küchenfabrik.
It has cited lquidity problems caused by China’s ‘zero COVID’ policy and its impact on the construction market as the reason for the company’s insolvency.
The Chinese investor, who is also the company’s distributor in China, had a large order committed for November and December but which was postponed to an indefinite date in 2023.
According to the company, it has led to a “considerable” drop in sales and, ultimately, a liquidity shortage.
Managing director of Warendorf Küchenfabrik GmbH Daniel Griehl commented: “This situation took me very much by surprise, especially considering how little time I have had at Warendorf yet, and the entire team too – all the more so as the way forward looks so promising and positive at this time.
“We have been able to increase year-on-year sales for the current year by around 20%, acquire ambitious new customers and develop a clear differentiation strategy.
“I firmly believe that Warendorf can become one of the most successful premium brands and I very much hope that we will find a solution for this situation.”
Warendorf Küchenfabrik GmbH achieved revenues of approximately €8 million in 2021.