Insolvency of the Red Cross: Over 450 jobs in Braunschweig endangered!

Insolvency of the Red Cross: Over 450 jobs in Braunschweig endangered!

In a surprising turn, the German Red Cross (DRK) in the Braunschweig/Salzgitter region registered bankruptcy. The announcement that was made on Wednesday has far -reaching consequences for over 450 employees in the region. However, the business is to continue under the supervision of a lawyer. The District Court of Braunschweig has also ordered insolvency proceedings in self -administration, which gives the DRK the opportunity to renovate itself.

Nico Seefeldt Kazazi, board member of the district association, emphasizes that there is already a renovation concept and there are good opportunities for sustainable relaxation. This is like a ray of hope at a time when the organization is confronted with economic difficulties, which was mainly caused by the Corona pandemic and the increased energy costs after the Russian attack on Ukraine. A planned sale of a former nursing home that should contribute to stabilization of the financial situation was delayed and played a central role in triggering bankruptcy.

The affected institutions

The district association, which has existed since 1948, operates a variety of important facilities, including consulting and youth centers, care facilities, daycare centers and two rescue guards. Together, these facilities generated annual sales of around 20 million euros. The subsidiaries "care and support" and "jumping stream" are also affected by the bankruptcy, which makes the situation even more complicated.

• over 450 employees affected
• renovation under the supervision of a lawyer
• facilities run without restrictions

The company will continue to do business as usual, with the clear goal of stabilizing itself financially. The salaries of the employees are secured by the bankruptcy money of the employment agency, which can take a great concern from the shoulders for the time being.

A look at the bankruptcy landscape

in Germany there were around 17,800 corporate bankruptcies. However, the DRK district association Braunschweig-Salzgitter is not the only one that is in this critical situation; The bankruptcy of a district association has an impact on the entire structure, since support from other structure is only possible to a limited extent. Such a fate is particularly threatening for many organizations outside of Bavaria because they have to act economically independently. Statistically speaking, one or two district associations could go insolvent every year.

The situation around the DRK illustrates the challenges that many social institutions are facing. Employers and managers in this industry are often facing strong competition, especially when it comes to gaining qualified specialists.

It remains to be seen whether the RK's redevelopment concept can be implemented successfully. However, one thing is clear: the way to financial recovery will certainly not be easy. As Nico Seefeldt Kazazi said, however, the confidence for successful renovation is noticeable.

Further information on this topic can be found in the articles of Image and Roter Circle .