Lila Bäcker closes every third branch - hundreds of redundancies
The Lila Bäcker bakery chain wants to save itself with insolvency proceedings, but is unable to find investors on its own. It is now continuing with an insolvency administrator, albeit in a slimmed-down form.
The insolvent bakery chain Lila Bäcker has to close around a third of its 230 branches. Around 500 of the 1600 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.
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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Due to the financial struggles, Lila Bäcker opted for insolvency proceedings, leading to the dismissal of approximately 500 employees as they had to close around a third of their branches. Despite the challenges, the insolvency administrator intends to continue operating with about two-thirds of the branches and employees.
Source: www.ntv.de
