Insolvency shock: Brothers smartly reports bankruptcy, 3900 jobs endangered!

Insolvency shock: Brothers smartly reports bankruptcy, 3900 jobs endangered!

The Brüder Sauer group of companies registered bankruptcy on June 25th, a step that affects the Hammer branch in Bernau near Berlin and around 200 other hammer markets. This chain, which has been active in the room equipment and home textiles since 1976, is under pressure due to weak market conditions and a doldrum in construction. On the day after the bankruptcy registration, a significant sale-and-lease real estate sales were also realized, according to the economic experts, which, according to the economic experts, was not sufficient to stuff the financial holes. IZ reports of this situation, which is worrying for many employees and customers.

The bankruptcy was applied for by self -administration to the Bielefeld District Court, which means that corporate management remains active and tries to renovate the company. "The company continues without interruption," emphasizes Yorck Streitbörger, the general representative of the group of companies. All branches remain open and orders are executed as usual. The aim is to secure a sustainable future for the company. Dirk Andres is on board as a provisional administrator. The renovation is to be supported via an already available financing concept. According to n-tv, around 3,900 employees are employed in the components concerned and whose salaries are secured up to and including August.

background of bankruptcy

The Brüder Sauer group has an impressive story that began in 1921 with a colors in Minden. Her first hammer furnishing markets were opened in the 1970s. Today the chain comprises more than 180 branches and around 60 craftsman markets from the brand. Unfortunately, the conditions in construction and furnishing are rough, and the bankruptcy is part of a larger trend that hits many companies hard. Statista indicates that the number of corporate bankruptcies in Germany rose to 17,814 in 2023, which is a worrying trend compared to the previous year.

It hit North Rhine-Westphalia particularly difficult, where the country has the highest number of bankruptcies. This situation is remarkable in view of the economic uncertainties and the decline in various industries. The uncertainties also affect private households, in which almost 67,000 people submitted a private bankruptcy application, as Statista reports.

The next few months will be decisive for the group of Brothers. Should the renovation strategy take place and stabilize the market conditions, the chain could perhaps lay the foundation for a new, solid future. How the situation will develop remains to be seen - however, this situation reflects the challenges with which many companies are faced in the current market landscape.