A traditional company has run into financial difficulties. One of the world market leaders with 500 employees now had to file for bankruptcy in Heilbronn.
Heilbronn – In Germany, the wave of bankruptcies of well-known and traditional companies is not stopping. The bankruptcy of a giant in the construction industry triggered a real earthquake. The tense situation even led to up to 30 bankruptcies in one week. But setbacks also occur again and again in other industries.
Among other things, a well-known heating specialist had to file for bankruptcy, as did a German grocery chain. A giant in the fashion industry could also slip into bankruptcy because the company has run into financial difficulties. But now it has also hit one of the world market leaders in its field. The well-known mechanical engineering company from Germany had to file for bankruptcy in Heilbronn on Tuesday.
Well-known mechanical engineering company Illig is insolvent – world market leader has been in trouble since Corona
Because the Heilbronn mechanical engineering company Illig is insolvent. The financial difficulties of the traditional company have already led to financial difficulties during the Corona pandemic. Now the company, which is one of the world market leaders in mechanical engineering for packaging and thermoforming, was forced to file an application for self-administration insolvency proceedings with the district court. The district court agreed to this on Tuesday (April 9).
It is not yet entirely clear what will happen next for Illig. What is certain, however, is: “The company should not be broken up. That’s clear,” says Michael Unser, the first representative of IG Metall Heilbronn-Neckarsulm, to
SWR
. It is now important to find an investor; additional, fresh money is needed. The business is there, Unser continued.
Mechanical engineering company Illig files for bankruptcy – 500 employees affected
The more than 500 employees at the headquarters in Heilbronn-Sontheim were informed about the bankruptcy filing on Tuesday. For the employees, it means that operations will continue as normal - at least for the next three months.
What happens next needs to be worked out now, Unser continued. However, IG Metall wants to stand up for the employees and ensure that jobs can be preserved for the future.
Traditional company Illig has to file for bankruptcy - the reason is customer reluctance
Michael Unser sees the reasons for the company, which was founded in 1946, to file for bankruptcy: customers' reluctance to buy and the difficult economic situation. That's why the 500 employees have no choice but to wait to see what happens next with the tool systems expert. Similar to the employees of a traditional company in Bavaria that recently filed for bankruptcy again.
Nevertheless, the company from Heilbronn apparently relies on self-administration in the event of bankruptcy. The mechanical engineer wants to complete the restructuring and find an investor to turn things around.