Retail trade - Around 500 redundancies at Lila Bäcker
The insolvent bakery chain Lila Bäcker has to close around a third of its 230 branches. Around 500 of the 1,600 employees will have to go, the company announced.
In October, the bakery chain with branches in Berlin, Mecklenburg-Western Pomerania, Brandenburg and Schleswig-Holstein applied for insolvency proceedings under self-administration. In December, the last investor for a takeover of the entire company had backed out. The insolvency proceedings were opened on January 1, as confirmed by the responsible district court in Neubrandenburg. Christian Graf Brockdorff was appointed as the insolvency administrator.
According to the company, branches in all four federal states are affected by the closures. According to the information provided, the redundancies primarily affect Unser Heimatbäcker GmbH, which produces bread and rolls in Pasewalk, as well as the branches and cafés. The focus is also on Unser Heimatbäcker Logistik GmbH, which is responsible for supplying the branch network.
"An overall solution for Lila Bäcker failed due to difficult market conditions caused by increased energy and raw material prices, which other bakeries are also suffering from," Viola Kaluza, head of Unser Heimatbäcker Holding GmbH, which operates as Lila Bäcker, was quoted as saying. Brockdorff announced that "we will continue to run Lila Bäcker from January with around two thirds of the branches and employees". He said he regretted the dismissal of almost a third of the staff. "This is the only realistic option for us to retain most of the branches and around 1100 jobs".
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- Despite the insolvency proceedings, the purple baker chain Lila Bäcker continues operations in Germany with around two-thirds of its branches and employees.
- The closure of around a third of Lila Bäcker's branches will result in dismissals for around 500 employees, as announced by the company.
- The insolvency administrator for Lila Bäcker, Christian Graf Brockdorff, expressed his regret over the necessary dismissals, acknowledging that it was the only viable option to save most of the branches and jobs.
- The bakery chain Lila Bäcker, with branches in Berlin, Mecklenburg-Western Pomerania, Brandenburg, and Schleswig-Holstein, filed for insolvency proceedings under self-administration in October.
- The struggling retail trade sector in Germany, including bakeries like Lila Bäcker, has been impacted by increased energy and raw material prices, causing difficult market conditions.
- The insolvency proceedings for Lila Bäcker were initiated by the district court in Neubrandenburg, which is located in the German state of Mecklenburg-Vorpommern.
- Unser Heimatbäcker GmbH, responsible for bread and roll production in Pasewalk and supplying Lila Bäcker's branch network, is one of the main areas affected by the dismissals and closures.
Source: www.stern.de
