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Subsidiary of Lila Bäcker ceases operations

2024-03-06T09:46:15.635Z

Highlights: Subsidiary of Lila Bäcker ceases operations. Mäkelbörger Kuchenmanufaktur, a subsidiary of the bakery chain, is now facing closure. The bakery company based in Neubrandenburg will have to stop production by the end of March. Despite good capacity utilization, the business does not generate sufficient surpluses. Potential investors decided against a takeover due to outdated technology and the renovation backlog in the building. “Without an investor, continued operation is no longer justifiable,” said Count Brockdorff.



As of: March 6, 2024, 10:27 a.m

By: Fabian Hartmann

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Until recently, employees had hoped that an investor would take over the company.

Now the Mäkelbörger cake factory has to stop operations.

Neubrandenburg – After the Lila-Bäcker bakery chain went bankrupt in February, Mäkelbörger Kuchenmanufaktur, a subsidiary of the bakery chain, is now facing closure. 

The bakery company based in Neubrandenburg will have to stop production by the end of March, explained insolvency administrator Christian Graf Brockdorff to the

German Press Agency

(dpa) on Tuesday.

Despite good capacity utilization, the business does not generate sufficient surpluses.

Ultimately, it was not possible to find a suitable investor to take over the company.

Potential investors decided against a takeover due to outdated technology

The business operations of the Mäkelbörger cake manufacturer with its around 150 employees should continue until March 15th.

A so-called phase-out production will then take place with around 50 percent of the employees by the end of March before production is stopped completely.

Until recently, there was hope for the employees that the traditional company would continue to exist.

“I extremely regret this step, especially since we have since managed to stabilize business operations despite the loss of the Lila Baker Group's branches,” said insolvency administrator Brockdorff, according to the dpa statement.

According to him, the potential investors have refrained from making an investment decision, particularly due to the outdated technology and the renovation backlog in the building.

“Without an investor, continued operation is no longer justifiable, so unfortunately we now have to take this step,” said Count Brockdorff.

The Lila Bäcker subsidiary was considered to be rich in tradition

The company, which still operates today as the Mäkelbörger cake manufacturer, was founded in 1969 as De Mäkelbörger Backwaren.

In 1997 it started producing frozen bread and other confectionery products.

The De Mäkelbörger group had two production facilities in Neubrandenburg and Wustermark.

The Vierrademühle in Neubrandenburg © Norbert Fellechner via www.imago-images.de

In total, it has 130 owned and 60 franchisee-run branches (as of January 31, 2014).

On July 1, 2014, the bakery company filed for bankruptcy.

The last branch of the Mäkelbörger cake manufacturer closed on December 24, 2014.

It was then taken over by the Pasewalk company Lila Bäcker.

The merger created a bakery group with sales of around 150 million euros, more than 3,000 jobs and 500 branches in northeast Germany.

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In October last year, Lila Bäcker filed for bankruptcy.

Initially it was planned to continue operations with the remaining 160 branches - but this plan also had to be revised a little later (January 19, 2024).

As a result of the bakery chain's bankruptcy, the remaining 900 employees also lost their jobs.

(fh)

Source: merkur

All news articles on 2024-03-06

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