Rostock Local Court grants Arcona's insolvency applications
The district court of Rostock has granted the application of the hotel company Arcona Hotels & Resorts for group insolvency in self-administration. In addition, lawyer Ulrike Hoge-Peters has been proposed and appointed as provisional administrator, the press spokesperson responsible for insolvency matters at Rostock Local Court announced on Tuesday in response to an inquiry.
Applications have been filed for the holding company and seven subsidiaries. Arcona operates four and five-star hotels in Weimar, Eisenach and on Sylt as well as several hotels on Rügen and Usedom. The company had filed for insolvency under self-administration for all German operations. In this type of insolvency, the management remains in control.
The administrator will now examine whether insolvency exists in the so-called opening proceedings. According to the court spokesperson, there was at least a threat of insolvency when the application was filed. However, insolvency proceedings are certainly an opportunity to restructure a company. This must also be comprehensively presented in the application. "That's what happened here."
On Monday, Arcona stated that its aim was 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 foreign operations in Austria and Spain are not affected by the insolvency in self-administration.
The company, which was founded in 2008, also announced that the investment decisions made during the ongoing pandemic and the company's rapid expansion had come up against 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 said.
Source: www.dpa.com
