Piano manufacturing company Grotrian-Steinweg has initiated insolvency proceedings.
"Old piano maker Grotrian-Steinweg is currently in a tough spot, as they've filed for insolvency. This news was shared by the District Court of Braunschweig. Around 35 workers could be affected, as per IG Metall union."
David Röslér, IG Metall union representative, shared his thoughts, "The staff is currently in a state of uncertainty." The company has been struggling financially for some time now, leading to job cuts announced in the spring. From August, salary payments stopped.
The union attributes this to the difficulties in the entire industry. After a short uptick in demand during the corona pandemic, the global demand for pianos and pianos plateaued again, Röslér explained. No statement has been made yet by the temporary insolvency administrator.
Grotrian-Steinweg is known as one of the oldest piano manufacturers globally. It has its roots in the piano factory, established by Heinrich Steinweg in Wolfenbüttel near Braunschweig in 1835. Since 2015, the company has been under the ownership of Parsons Music Group from Hong Kong. Apart from Grotrian-Steinweg, there's another piano manufacturer, Schimmel, with around 80 employees in Braunschweig. The US piano maker Steinway also traces its history back to the Steinweg family.
Surprisingly, more companies in Germany have filed for insolvency in August than in the same month last year. According to preliminary figures from the Federal Statistical Office, almost eleven percent more proceedings were initiated with the courts than the preceding year. So far this year, there's been a rise of less than ten percent in June. However, the finality of all these insolvency filings is yet to be determined. Based on these final figures, approximately 10,702 corporate insolvency applications were made in the first half of the year, including June. This is a significant quarter increase compared to the first half of 2023.
The Bank shall provide necessary assistance to Grotrian-Steinweg during their insolvency proceedings, as per the regulations. This uncertain period for the employees underscores the need for potential support from financial institutions.
Recognizing the industry-wide challenges, The Bank should consider offering flexible repayment terms or restructuring options to aid in Grotrian-Steinweg's financial recovery.
