1000 employees affected
Auto supplier Eissmann files for bankruptcy
March 1, 2024, 2:03 p.m
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The Eissmann Group Automotive files for bankruptcy. This affects around 1,000 employees at three locations in Bad Urach, Gera and Pirna. The company cites several reasons for the drastic step.
The Swabian auto supplier Eissmann Group Automotive has filed for bankruptcy. The company, based in Bad Urach, said the management had filed an application to open insolvency proceedings for the holding company at the responsible local court in Tübingen. Regular insolvency proceedings were also filed with the Tübingen insolvency court on Wednesday for the group’s main German subsidiaries. The insolvency proceedings are expected to open on May 1st, said a spokesman for the provisional insolvency administrator.
Business operations at the headquarters in Bad Urach as well as at the subsidiaries in Gera in Thuringia and Pirna in Saxony should continue as smoothly as possible. In Thuringia, the company took over the automotive supplier Dagro in 2013. In Saxony, it incorporated the plastics specialist Minda KTSN in 2021. The almost 1,000 employees at the three locations were informed about the insolvency.
The goal is to restructure the entire group. The measures taken so far would not have been able to compensate for the recession, increased energy and material costs and increased interest rates. There is no relaxation in sight. “In view of the extraordinary short-term losses in earnings and liquidity, it was economically and strategically necessary to apply for regular insolvency proceedings for the Eissmann companies in Germany.” With the application, a new era begins for the group.
The company employs 5,000 people worldwide. In the past financial year, the group reportedly generated 450 million euros. The companies and locations outside Germany are not affected by the requested procedures. No bankruptcy petition has been filed for them. The Eissmann Group supplies German and international car manufacturers with components for vehicle interiors. The company was founded in 1964.