Organic market pioneer insolvent: supermarket chain applies for protective shield proceedings in Munich
Created: 12/21/2022 11:38 am
By: Stella Henrich
The organic supermarket chain Basic is bankrupt.
The markets should remain open for the time being.
A protective shield procedure at the Munich District Court has already been applied for.
Munich – The organic supermarket chain Basic has filed for bankruptcy.
Apparently, falling demand and rising rents have put the company in financial difficulties, reports the
BR
.
Added to this are high prices and inflation, which are causing problems for the organic sector in Mark.
The management of Basic has now applied for a protective shield procedure at the Munich District Court.
The retailer's 20 organic shops should remain open during the process.
The district court of Munich has already followed the application in insolvency law.
Basic confirmed this to
BR
.
The company is not insolvent, the report said.
The salaries of the approximately 520 employees in the 20 branches in Germany are secured for three months by the Federal Employment Agency.
Operations in the branches will initially continue as normal.
In Germany, the organic market chain has branches primarily in Bavaria, but also in Hesse and Baden-Württemberg.
Organic supermarket chain Basic insolvent: Increased food prices are ruining business for the organic chain
Basic justifies the step into insolvency with cautious consumer behavior due to increased food prices.
According to its own statements, the chain can rely on the loyalty of most of its customers.
However, 15 percent of consumers are changing customers who are holding back because of the high inflation.
Similar to other food retailers, the high energy costs also hit the balance sheet of the organic chain.
Many dealers have been demanding a quick relief package from politicians for months.
The organic market chain Basic is insolvent.
(symbol image) © imago
Organic pioneer Basic insolvent: Subsidiary shares responsibility for financial difficulties
The company's subsidiary Biomammut is also to be rehabilitated using the protective shield process, Basic reports.
Biomammoth had already filed for insolvency proceedings in self-administration at the end of November and probably weighed heavily on Basic's business.
According to Lebensmittel Zeitung (LZ)
, Biomammoth has
a total of six stores in Baden-Württemberg.
Basic was one of the pioneers among organic supermarkets.
The chain was founded in 1997, is one of the five largest organic chains after Denn's, Alnatura, Bio Company and ebl-naturkost and most recently generated net sales of around 150 million euros.
At the end of November, the organic supermarket chain opened a new store at its headquarters in Munich.
Supermarket chain Basic is insolvent: The entire organic industry is in transition - many are already insolvent
According to LZ
, the entire organic retail trade has been struggling
since the Ukraine war with declining sales and the willingness of switching customers to switch to cheaper items from discounters or drugstores in view of the high prices for organic products.
This trend has already led to some imbalances within the industry this year.
also read
Supermarket employees speak plain language: Which sentences totally annoy us - "You hear it 100 times a day"
READ
Saving heating costs and electricity with aluminum foil: home remedies are a real secret trick
READ
State subsidy for heating oil and pellets: what consumers need to know now
READ
“Just amazing”: Rewe-Bon shows people affected by poverty for three simple items
READ
Changes for tenants from 2023: The landlord must bear these costs
READ
Fancy a voyage of discovery?
My space
The largest health food retailer, Bacher, is now also being renovated.
However, the fight of the health food stores has been occupying the district court of Munich for some time.
The fifth largest specialist retailer on the market is also affected: Superbiomarkt.
Here, too, an insolvency administrator is already active.
The Gießen organic wholesaler BiUno is closing down completely after the renovation.
