Galvanoform files for insolvency and appoints insolvency administrator

The business operations of Galvanoform Innovative Technologies GmbH, based in Lahr in the Black Forest, will continue in full even after filing for insolvency. All orders are being processed, manufactured and delivered as planned. The company, which was founded in the 1950s, specializes in the manufacture of precision tools for electroforming. Dr. Dirk Pehl from the Achern office of the nationwide law firm Schultze & Braun has been appointed provisional insolvency administrator by the Offenburg Local Court. The specialist lawyer for insolvency and restructuring law is currently examining the economic conditions for the company's survival. "Galvanoform is a leading manufacturer in a relevant economic segment with decades of experience and a specialization in the manufacture of precision tools. This combination could make the company interesting for an investor," says Dr. Pehl. The workforce has already been informed by the provisional insolvency administrator and the management about the situation and the next steps. The wages and salaries of the approximately 70 employees are secured until at least the end of May by the so-called insolvency substitute benefits.

Galvanoform to be preserved through insolvency proceedings

The aim of the insolvency proceedings is to preserve Galvanoform and as many jobs as possible. This could be made possible by an investor taking a stake in the existing company. "Anyone interested in joining is welcome to contact me. The process is open to everyone," says Dr. Pehl. However, it is already clear that Galvanoform's economic situation is critical and time is of the essence. If no continuation solution is found by the end of the insolvency benefit period at the end of May, business operations will foreseeably have to be shut down in a controlled manner. The reason for the financial difficulties is the unforeseeable and short-term decline in sales due to the general economic weakness in the sectors in which Galvanoform's customers operate, which is having a negative impact on the order situation. Other negative factors include increased competition from China and cost increases due to high energy and raw material prices. Galvanoform was no longer able to close the liquidity gap caused by this combination on its own. "The challenges that have persisted for several years now have not left us or our customers unscathed. Lower turnover in our customers' industries inevitably means fewer orders for us as a tool manufacturer," says Managing Director Hans-Günter Bayer, summarizing the development and the ongoing challenges. "Many customers commission us regularly. However, as they are also affected by the economic impact of the crises in their industries, they were and are unable to do so as usual." In recent years, Galvanoform has faced economic challenges on several occasions, which led to insolvency filings in 2019 and 2022. The current shareholders took over the company from the last insolvency as part of an asset deal.