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Hellweg’s bankruptcy is spreading further! After a large chain of hardware stores (68 branches in Germany, approximately 2,900 employees) was forced to file for bankruptcy in mid-June, BayWa’s hardware and garden centers also began to falter. Now the next chain of the group of companies is in attack: a specialized store of garden accessories and plants.
Gartencenter Augsburg GmbH & Co. KG filed an application for insolvency proceedings within the local government. In total, the network has seven branches. North Rhine-Westphalia. The locations are scattered throughout the Ruhr region: Bochum, Castrop-Rauxel, Hagen, Iserlohn, Krefeld, Schwerte and Unna. All markets must remain open so that business operations can continue without restrictions during the process and nothing changes for customers initially.
Here’s how things continue at the company
During insolvency Management remains fully empowered to act and give direction. The network of garden centers is supported by renovation specialists from the law firm Görg. “The emergence of self-government opens up this Chase the opportunity to prepare for the future,” explains lawyer Professor Dr. Gerrit Hölzle in a statement obtained by BILD.
Gartencenter Augsburg GmbH & Co. KG has now also filed for bankruptcy.
His colleague Dr. Karl-Friedrich Kurze adds: “As part of the self-management process, we will immediately initiate a structured investment process to ensure the long-term future of the company.” The goal is branches economically reorganize and create conditions for sustainable continuation. About 360 Employees Salaries for the next three months will be provided by insolvency benefits from the Federal Employment Agency.
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How did bankruptcy happen?
The reasons for the financial difficulties are the market environment, which has been challenging for many years with rising purchase prices and a declining willingness to buy, as well as rising rents and other inflation-related factors. Increase in cost called.
At first the famous one had Chain of hardware stores Hellweg filed for bankruptcy. A few days later the subsidiary went bankrupt. BayWa hardware and garden centers and now a chain founded in 1965 by gardener Hans Augsburg, which has been part of the Hellweg Group since 2013.