THE HYGIENIC PAPER FACTORY DECLARED BANKRUPTCY

The company Hakle GmbH from Dusseldorf announced plans for restructuring. In a bankruptcy petition filed with the district court, the firm reported that it had become insolvent and could not cope with the situation on its own. The reason for the insolvency of the sources is the increase in the cost of electricity and raw materials.

Hakle has existed in Dusseldorf since 1928. Once the company was the owner of the first German company that started producing toilet paper. Now, according to German publications, the company is rapidly moving towards the official recognition of its bankruptcy.

In the first year of the coronavirus pandemic, the company made a net profit of €650 thousand. The revenue then amounted to about €80 million. Now the situation is fundamentally different. The factory was unable to shift its costs to customers representing the pharmacy business and grocery retail. At the same time, the cost of materials, transportation costs and electricity has increased significantly.

The head of the organization Volker Jung informed the public that the activities of the factory will continue in the same volume. The application to the court and the proposed reorganization will allow the company to show flexibility and withstand market pressure in the long term. The company's management hopes thereby to survive the energy crisis.

According to the director, the initial steps to stabilize the business have been taken. Employees will continue to receive benefits allocated by the Federal Employment Agency in connection with the insolvency of the enterprise. This will allow us to hold out for the next three months. At the same time, the company's key partners and clients have already expressed their support. Jan-Philippe Hoos was appointed as a trustee, who was instructed by the local court to restructure the company's assets.

Фото: Изображение от Freepik