2024-08-17 23:21:03
Will the last move soon be made? The Baden-based cigarette manufacturer TMCC is apparently insolvent. The company is currently losing a mid-six-figure sum every day.
According to a media report, the cigarette producer TMCC (Tobacco Manufacture and Cigarette Company) from Achern is insolvent. According to the “Badische Neuste Nachrichten”, the company has filed for insolvency at the Offenburg District Court. The first steps of insolvency proceedings are currently underway to examine whether restructuring is possible.
The company is to continue operations and the jobs of more than 40 employees are initially secured, Matthias Braun, spokesman for the Achern law firm Schultze & Braun of the provisional insolvency administrator Dirk Pehl, told the “Badische Neusten Nachrichten”. Wages and salaries are secured through insolvency benefits from the Federal Employment Agency until October.
According to the report, there are many reasons for the insolvency. A key factor is the industry’s high capital requirements, as the tax stamps for cigarette packets have to be pre-financed. Added to this is a loss of production due to a defective machine. The reluctance of tobacco consumers also had an influence.
“It’s a relatively simple business, but it’s a big challenge,” said law firm spokesman Matthias Braun. The company is losing a mid-six-figure amount in revenue every day due to the loss of production alone, the report says. In addition, interim financing has become more difficult for the tobacco industry: “Sustainability issues are now playing a bigger role for banks and investors too.”
An investor process is currently underway. According to law firm spokesman Braun, there are already “initial interested parties” for the cigarette manufacturer. TMCC produces cigarettes and other tobacco products. It sells its own brand Skavenbeck, among others. The company was founded in Baden-Baden in 2001 and moved to Achern, around 20 kilometers away, eleven years later.