Arcona Hotels & Resorts files for insolvency under its own management
Due to financial difficulties, Arcona Hotels & Resorts has filed for group insolvency under self-administration for its German operations. This was announced by the Rostock-based company on Monday evening. The aim is to preserve the company as a whole and reposition it for the future. The salaries of the 500 or so employees affected are secured until the end of January thanks to the insolvency compensation. This will leave sufficient time for the next restructuring steps.
The company, which was founded in 2008, stated that the investment decisions made during the ongoing pandemic and the rapid expansion of the company were due to unforeseeable external factors. These included the war in Ukraine, energy supply bottlenecks and high inflation. "The resulting general reluctance of guests to spend led to a considerable drop in sales, particularly in the hotels' restaurants," it continued.
The decision to file for insolvency under self-administration was also made in order to secure jobs in the company and create opportunities for a fresh start. "The management is confident that this step is absolutely right and necessary in order to restore the company's financial stability and shape a successful future," the company management went on to emphasize.
Arkona operates hotels on Rügen, in Weimar, on Sylt and in Eisenach, among others. The foreign operations in Austria and Spain are not affected by the insolvency in self-administration. A hotel project in Hinterstoder/Upper Austria was reportedly already taken over by the owner of the property a few days ago.
The company's struggle in the Hospitality industry, specifically in Gastronomy and the Hotel industry, was largely influenced by external factors such as the war in Ukraine, energy supply bottlenecks, and high inflation. These factors led to a significant decrease in sales, particularly in the hotels' restaurants, contributing to the financial difficulties that led to the insolvency filing.
Despite facing insolvency, Arcona Hotels & Resorts aims to preserve the company and reposition it for the future, highlighting their commitment to the Hospitality industry and their employees in Germany.
Source: www.dpa.com
