More than 150 employees affected
The Staffel car dealership group files for bankruptcy
November 9, 2024 – 5:48 p.mReading time: 2 min.
Staffel has operated several car dealerships for more than 30 years. The group is now facing bankruptcy.
The “Autohaus Staffel” group based in Hildburghausen, Thuringia, has filed for bankruptcy. On October 28, the Meiningen District Court ordered provisional insolvency administration for the company and appointed the law firms Pluta Rechtsanwalts GmbH and FRH Rechtsanwälte as insolvency administrators. The group of companies includes five companies that are represented at seven locations in Thuringia and Bavaria. The car dealership chain sells Opel, Ford and Mitsubishi vehicles at its locations in Hildburghausen, Schleusingen, Sonneberg, Suhl, Coburg and Kronach. In total, the group employs 165 people, whose salaries are secured through insolvency money until December.
According to managing director Manfred Staffel, the group is in such a difficult financial situation for the first time since it was founded in 1990. Staffel explained that they were hoping for a solution together with the insolvency administrators to save the group. Staffel is a family business that has specialized in the sale and service of new and used cars since the beginning. The company is particularly present in southern Thuringia and has been firmly rooted in the region for decades.
The causes of the bankruptcy include liquidity problems resulting from a noticeable decline in demand for new and used cars. This is an effect of the generally tense economic situation in Germany, which is reflected in a reluctance to buy, the insolvency administrators report. In addition, the automotive industry is suffering from difficult conditions, which make the situation even more difficult. Staffel emphasizes that the continuous expansion in recent years, during which new locations have been opened, has also brought additional financial burdens.
The provisional insolvency administrators Pluta and FRH say they are working intensively on various restructuring scenarios. The goal is to continue business operations in all car dealerships and to find long-term solutions. Lawyer Sebastian Laboga from Pluta explained that they had quickly gained an overview and started discussions with relevant business partners. Dirk Götze from FRH added that there was close cooperation between those involved and that all restructuring options would be examined in the coming weeks. These include both an overall solution for the entire group and possible individual solutions for the various locations.
According to the information that the law firms published as part of the bankruptcy, specific responsibilities for the individual locations have already been determined. Laboga is responsible as preliminary insolvency administrator for the main company Autohaus M. Staffel GmbH with over 80 employees in Hildburghausen. The Autohaus Galant GmbH branch in Schleusingen is managed by Pluta lawyer Susanne Hesse, and four employees work there. Götze is taking over the provisional insolvency administration in Coburg, Kronach and Suhl; these three locations employ around 80 people.
Despite the tense financial situation, operations are currently continuing at all seven locations. The management hopes for a successful restructuring. However, it remains unclear whether a long-term solution will be found for the entire group or whether individual locations will be sold separately. The next phase will now depend on the precise analysis of the restructuring options and the ongoing negotiations with suppliers, car manufacturers and banks.
Interview: The Future of the Automotive Industry after Staffel’s Bankruptcy
Editor (Time.news): Good morning, and thank you for joining us today. With the recent news of the Staffel car dealership group filing for bankruptcy, we want to unpack the implications of this event. We’re fortunate to have with us Dr. Anna Weiss, an expert in automotive economics. Welcome, Dr. Weiss.
Dr. Anna Weiss: Thank you for having me. I’m glad to be here to discuss such an important topic.
Editor: Dr. Weiss, can you start by giving us an overview of what led to Staffel’s filing for bankruptcy?
Dr. Weiss: Certainly. Staffel, which has been a staple in the automotive market for over 30 years, has faced significant financial challenges that led to its current situation. The company reported liquidity issues primarily due to a sharp decline in demand for both new and used vehicles. This decline is connected to broader economic conditions in Germany, manifesting in consumer reluctance to make big purchases, including cars.
Editor: That’s quite concerning. You mentioned consumer reluctance. In your opinion, what are the main factors influencing this behavior?
Dr. Weiss: Several factors contribute to this reluctance. Primarily, ongoing economic uncertainty—including inflation, rising interest rates, and geopolitical tensions—creates hesitance among consumers. Additionally, supply chain issues in the automotive sector, which have plagued the industry for the last few years, have led to higher vehicle prices. This combination of factors has resulted in reduced purchasing power for many potential buyers.
Editor: It’s a complex situation, to say the least. Staffel’s managing director stated that they experienced a significant financial downturn for the first time since their inception in 1990. Does this indicate a larger trend within family-owned enterprises in the automotive sector?
Dr. Weiss: Absolutely, it’s reflective of a larger trend. Family businesses often face unique challenges when adapting to rapid changes in the market. While they have the advantage of established brand loyalty and community ties, they can struggle with agility in decision-making compared to larger corporations. As we see technologies evolve and consumer preferences shift quickly, these businesses need to innovate and perhaps diversify their offerings to remain competitive.
Editor: It seems that the expansion efforts previously made by Staffel may now serve as a double-edged sword. Can you elaborate on this?
Dr. Weiss: Yes, expansion can indeed be a double-edged sword. While new locations can drive growth and increase market presence, they also come with higher operational costs and risks, especially if the overall market is contracting. Staffel’s recent expansion, while well-intentioned, may have overextended their resources just as market conditions worsened. It highlights the importance of market analysis and adjustment for any growth strategy.
Editor: The appointed insolvency administrators are working on potential restructuring scenarios. What do you think are the key components of a successful restructuring in this scenario?
Dr. Weiss: For restructuring to be successful, the insolvency administrators need to focus on a few key areas. First, they should conduct a thorough assessment of the company’s financial health and operational efficiency. Streamlining operations to cut unnecessary costs is critical. Additionally, they may want to explore renegotiating supplier contracts to improve cash flow. Most importantly, they need to communicate effectively with staff and stakeholders about the changes to maintain trust and morale.
Editor: It sounds like the road ahead is challenging but not impossible. What can other car dealerships learn from Staffel’s experience?
Dr. Weiss: One of the key lessons is to remain vigilant and adaptable in a changing economic climate. Businesses should continually assess market trends, consumer behaviors, and their own financial positions. Diversification of products and services, as well as maintaining a flexible operational model, can also help mitigate risks associated with sudden market shifts.
Editor: Thank you, Dr. Weiss, for your insights into the current challenges facing not only Staffel but the wider automotive industry. It’s evident that adaptability and proactive management will be crucial moving forward.
Dr. Weiss: Thank you for having me. It’s an important topic, and I hope Staffel and others in the industry can navigate these turbulent times successfully.
Editor: And thank you to our audience for tuning in. We will continue to follow this developing story and its implications for the automotive sector.