Surface finisher Mbw Group files for insolvency

The Baden-Baden Local Court has appointed Dr. Dirk Pehl from Schultze & Braun as provisional insolvency administrator for the affected companies of the Mbw Group. Business operations will continue without restrictions. Employees will be covered by insolvency benefits up to and including February 2025. The aim of the insolvency applications is to secure the Group's liquidity, restructure it and enable it to make a fresh start. The provisional insolvency administrator is examining corresponding restructuring options. "In the coming days, we will start a search for potential investors. Both financial investors and strategic investors, such as competitors or companies that would like to expand their offering with a takeover, could be considered. An investment could be worthwhile because the Mbw Group has strategically developed into several future-oriented finishing processes and market segments," says the provisional insolvency administrator Dr. Dirk Pehl, who is currently gaining an overview of the Group's economic situation at its headquarters in Rheinmünster, Baden-Württemberg.

Mbw Group maintains business operations despite insolvency

The entire Mbw Group is maintaining its business operations. "Our customers can rest assured that their orders will be produced and delivered as agreed. There are no restrictions in production due to the insolvency applications," says Managing Director Vanessa Schmidt. The approximately 320 employees at the various company locations have been informed of the proceedings in writing. Their wages and salaries are to be secured via the insolvency substitute benefits.

Cost increases as the cause of insolvency

The main cause of the economic difficulties is the current economic trend in the automotive industry, which is one of the main customers for products from the Mbw Group. Due to planning uncertainties, several series launches were recently delayed or did not take place as planned. Added to this are financial burdens from cost increases for materials, energy and personnel. As an energy-intensive company, the Mbw Group is particularly affected by high energy prices, as well as the requirements to achieve climate neutrality. "Overall, only some of these various cost increases could be passed on to our customers or offset by new business. The underutilization and the remaining burdens for our company now mean that our liquidity situation is very tight and we will no longer be able to meet our repayment obligations in the foreseeable future. We were therefore forced to file for insolvency in order to be able to reposition ourselves using the instruments of insolvency law and at the same time find partners to support us with fresh money through a targeted search for investors," says Managing Director Vanessa Schmidt.