Internet-based shopping platform renamed after successful acquisition - Weltbild faces insolvency; restructuring planned.
Online and print retailer Weltbild GmbH & Co. KG has submitted an insolvency filing to the Augsburg District Court, as noted on the insolvency notifications website insolvenzbekanntmachungen.de on Monday. Insolvency administrator Christian Plail from Schneider Geiwitz & Partner in Ulm has been appointed as the temporary administrator. The "Wirtschaftswoche" had previously reported on the insolvency application.
WB D2C Group, the parent company, revealed that other brands and investments won't be affected by the insolvency proceedings. Among the group's other companies are the gardening retailer Gärtner Pötschke, online bookstore Bücher.de, antique seller Jokers, and art and photography publication house teNeues. Weltbild accounts for approximately 20% of the group's overall revenue. Recording over 2,000 employees and 600 million euros in annual revenue, the group remained the largest employer in the industry last year.
Previous Insolvency at Weltbild-Verlag
The purpose of the insolvency, according to the company, is to restructure the Weltbild operations. The backdrop for the financial crisis includes international crises, as in Ukraine and Israel, which have disrupted the supply chain. Competing aggressively with Asian companies has further aggravated the situation. No clear figure was provided regarding the number of employees working for the impacted subsidiary.
The current Weltbild business derives from the former Verlagsgruppe Weltbild in Augsburg. A decade ago, Augsburg's Verlagsgruppe Weltbild went bankrupt, and Droege, a family-owned company from Dusseldorf, later acquired it. Some time ago, insolvency administrator Arndt Geiwitz, now part of Schneider Geiwitz & Partner, was in charge of managing the situation.
