WACHTEL GmbH is going into restructuring under self-administration. The management remains in office and acts under the supervision of a trustee. Restructuring expert, Dr. Christian Gerloff, partner at the Munich law firm Gerloff Dear, will provide support through the proceedings. Dr. Gerloff has successfully completed restructurings in the past, acting as a Chief Restructuring Officer (CRO), insolvency administrator, or trustee. Wachtel is also supported in the self-administration process by the Allen & Overy law firm.
The company had to deal with COVID-related supply chain problems, along with significant increases in material costs, while also coping with declining orders since spring, due to exploding energy problems the bakeries are facing.
WACHTEL has around 250 employees at its two facilities in Germany. The German employees will receive insolvency money from the Federal Employment Agency until the end of February 2023.
The family company was founded in 1923 and is based in North Rhine-Westphalia Hilden. It is managed by Oliver Frey in the third generation and sells ovens and cooling systems to bakeries and bakery chains in more than 30 countries. International sales make up almost a third of its total turnover of around EUR 35 million.
CEO Oliver Frey said in a statement: “The restructuring process makes it possible for our company, together with our employees, to face the difficult task of adapting to the market environment. The self-administration procedure aims to set up WACHTEL in a sustainable way again and to find a partner through a structured investment process.”
CRO Christian Gerloff added: “There is no question that the current crisis is the result of a special situation. This is essentially due to external factors such as the war against Ukraine, rising energy prices and the resulting drop in demand. However, the company’s established market position and international orientation currently offer good opportunities for a continuation of operations.”
Photo: The PICCOLO PRO oven by WACHTEL. Credit: WACHTEL