Boizenburger Fliesenfabrik GmbH & Co. KG

Insolvency because of unit prices that are too low

If a company cannot cover its costs and the house bank does not grant any further loans, insolvency is unavoidable.

Ulrich Rosenkranz – Rechtsanwalt, Partner – BRRS Hamburg

Insolvency Administrator

Ulrich Rosenkranz

BRRS Office

Hamburg

Local Court

Hamburg

Proceedings

Standard Insolvency Proceedings

Key Facts

Ceramics production and sales in Germany, Europe, Russia 257 employees

Result

Preservation of all jobs

Period

Start: 2008

Initial Situation

Founded in 1999 and operating internationally, the company acquired the tile plant in Boizenburg from the insolvency proceedings prior to a takeover or winding-up of Boizenburg Gail Inax AG. Actually, this should have been a good initial position to make a fresh start. Thanks to considerable financial support — including aid from the state of Mecklenburg-West Pomerania — production was converted to high-quality products.

Seeking to generate revenue, the company neglected the specialist trade and instead supplied DIY stores at prices that did not cover costs — a classic mistake made by overly leveraged companies with management that is not competent in the field. When the house bank refused to grant any further loans, the company became insolvent.

The Insolvency Proceedings

Insolvency administrator Ulrich Rosenkranz continued to run the company for three years and posted annual revenue of €22 million. At the same time, he looked for a buyer while restructuring costs, processes, and personnel. He ultimately managed to find a buyer who took over all employees.

The Result

Continuation of business operations in insolvency
Sale
Retention of all jobs
Conclusion: 2020

Further Reference Proceedings from Ulrich Rosenkranz

LFS Life Food System AG

Proceedings: Standard Insolvency Proceedings

Industry: Gastronomy

Administrator: Ulrich Rosenkranz

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