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Lila Bäcker closes operations

Lila Bäcker will close all of its 160 remaining branches and the bakery in Pasewalk on February 1. Approximately 900 employees working in the branch network, logistics and administration will be laid off. Since the remaining interested party could not adequately prove its financing and did not meet formal requirements, the banks refused to offer further financing of the business. The creditors’ committee therefore decided to close all operations. Investors are still being sought for Mäkelbörger KuchenManufaktur, explained the insolvency administrator Christian Graf Brockdorff, BBL Brockdorff law firm, who took over the fortunes of the Lila Bäcker Group before the end of 2023.

“The last offer from the only remaining interested party also had to be rejected by the banks for formal reasons. The financiers are therefore no longer prepared to bear losses from ongoing business operations. However, without such a commitment from the banks, we cannot and must not continue operations. For our committed employees, their families and our loyal customers, I very much regret that no suitable investor has been found to continue operations. Unfortunately, we now have to close the remaining 160 branches in the federal states of Mecklenburg-Western Pomerania, Brandenburg, Berlin and Schleswig-Holstein. The same applies to the logistics area, administration and production in Pasewalk. Around 900 employees will therefore have to be laid off on February 1. There is legitimate hope for Mäkelbörger KuchenManufaktur, which will continue to operate in bankruptcy. Competitors are also likely to be interested in some branches. After February 1, we will be happy to mediate the necessary contacts between landlords, employees and interested parties and may be able to help maintain as many jobs as possible even after the company is closed,” says Christian Graf Brockdorff.

The business operations of Unser Heimatbäcker GmbH, which was responsible for the production of bread and rolls in Pasewalk, as well as the operation of the branches and cafés, Unser Heimatbäcker Logistik GmbH, which took care of the supply of the branch network, and the administrative unit Unser Heimatbäcker Holding GmbH will therefore be wound up in the next few weeks due to the situation that has arisen. These companies have been in self-administration since October 23 last year and have been in regular insolvency since January 1, 2024. The last bread and rolls were baked in Pasewalk on January 26. The branches closed from January 29, for the spaces to cleaned bedore handing them over to the landlords on February 1.