More than 150 employees affected
The Staffel car dealership group files for bankruptcy
Updated 11/10/2024Reading 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 between Time.news Editor and Insolvency Expert
Editor: Welcome to Time.news! Today, we’re delving into a significant development in the automotive industry as the Staffel car dealership group has filed for bankruptcy. Joining us is insolvency expert, Dr. Anna Fischer, who will provide insights into the implications of this situation. Dr. Fischer, thank you for being here.
Dr. Fischer: Thank you for having me. It’s an important topic, especially for the automotive sector.
Editor: Absolutely. The Staffel group has been a key player in the German car market for over three decades. Can you explain what led to their bankruptcy?
Dr. Fischer: Certainly. Staffel’s bankruptcy appears to be primarily driven by liquidity problems, which can often stem from declining demand. The current economic climate in Germany has fostered a general reluctance among consumers to purchase new and used cars. This, combined with the challenges posed by the automotive industry — for instance, supply chain issues and rising costs — has created a perfect storm for companies like Staffel.
Editor: That sounds quite concerning. We learned that Staffel has been expanding in recent years. How can a growth strategy lead to financial distress like this?
Dr. Fischer: It’s a nuanced situation. While expansion is usually a sign of confidence and opportunity, it also requires substantial investment and comes with increased financial risks. In Staffel’s case, the decision to open new locations may have stretched their financial resources too thin. When demand drops suddenly, those newly opened dealerships can become liabilities rather than assets, leading to significant financial strain.
Editor: The insolvency administrators have emphasized their commitment to exploring restructuring options. What does that process typically involve?
Dr. Fischer: Restructuring can take many forms. Typically, administrators will analyze the company’s operations to identify areas for cost savings, negotiate with creditors for better terms, or even discuss potential mergers or acquisitions. In Staffel’s case, keeping all dealerships operational is a priority, which speaks to their commitment to preserving jobs, but it will require careful management of resources and a strategic turnaround plan.
Editor: Speaking of the workforce, over 150 employees are affected by this bankruptcy. What kind of protections do they have during this process?
Dr. Fischer: Employees can take some comfort in Germany’s system of insolvency money, which secures their salaries for a certain period, in this case, until December. This gives them some breathing room while the company seeks a resolution. Additionally, if successful restructuring occurs, there may be opportunities for employees to remain with the company long-term.
Editor: What does the future hold for the automotive industry as a whole, given the challenges companies like Staffel are facing?
Dr. Fischer: The automotive industry is at a crossroads. While the current economic challenges are significant, there is also the potential for innovation and change, particularly with the shift towards electric vehicles. Companies that can adapt to market demands and leverage new technologies may find themselves thriving. However, those unable to pivot may continue to face hardships.
Editor: Thank you, Dr. Fischer, for sharing your valuable insights. It’s a critical moment for Staffel and similar companies in the automotive landscape. Let’s hope for a positive outcome for both the business and its employees.
Dr. Fischer: Thank you for having me. I share that hope, as the vitality of family-owned businesses like Staffel is important not just for their regions but for the economy as a whole.
Editor: And thank you to our audience for joining us today. Stay tuned for more updates on this developing story.