Insolvency: Traditional bakery closes location

by times news cr

2024-10-03 14:00:55

The Sternenbäck large bakery is closing its Hechingen location by the end of the year after renewed insolvency proceedings. The future of the remaining branches remains uncertain.

The traditional large bakery Sternenbäck has announced that it will close its production site in Hechingen by the end of 2024 at the latest. “The Hechingen location will continue to operate at most until the end of the year,” says managing director Frank Winter. This decision comes as part of self-administration insolvency proceedings that the company initiated in May to respond to increased costs.

The traditional company, founded in 1766, employs around 1,000 people across Germany. Sternenbäck operates 34 branches in Baden-Württemberg, which were previously supplied by Hechingen. The closure of the location now raises questions about the continued supply of these branches. So far there has only been an all-clear for two East German locations. Continuation solutions are available for the Gera and Spremberg production sites, according to a company statement.

In May, the large bakery filed for insolvency proceedings for the second time in four years. A restructuring process was intended to respond to the sharply increased costs for raw materials, energy and personnel.

The company went bankrupt for the first time in 2020, but was able to save itself with an initial restructuring process. At that time, the company was forced to close almost half of its branch network in order to stay financially afloat. “Difficult branches naturally drag the company down even more in a crisis like this. It was therefore important to get rid of this ballast,” explained the Ebner Stolz law firm, which provides legal support for the company, at the time.

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