GERMANY – The kitchen furniture manufacturer Poggenpohl Möbelwerke GmbH, which has belonged to the Adcuram Group since the end of January 2017, applied to the district court in Bielefeld for the opening of insolvency proceedings on April 24.

Manuel Sack from the law firm Brinkmann & Partner, who is the provisional insolvency administrator, wants to stabilize business operations and ensure the delivery of finished orders. At the same time, he plans to initiate an investor process this week that will sustain the company and the brand.

The wages and salaries of the approximately 270 employees at Poggenpohl Möbelwerke GmbH are to be secured from April to June through the insolvency loss allowance.

The bankruptcy application relates only to the parent company Poggenpohl Möbelwerke GmbH.

The company justified the application for bankruptcy in a statement published today with a significant drop in orders and sales caused by the Corona crisis.

The resulting liquidity bottlenecks could not be compensated for by the countermeasures initiated, such as short-time work and production adjustments.

It was not possible to use funds from the federal government’s aid program to cope with the corona crisis due to the restructuring program in progress at Poggenpohl.