During the Covid-19 pandemic, the construction of complete facilities was accelerated. The reasons given for the insolvency are a decline in orders during the corona pandemic, supply chain problems and extended pre-financing periods as well as price increases that were not sufficiently taken into account. In addition, the construction of new structures to convert the production of components to the construction of complete systems was cost-intensive. These investments were offset by only modest annual profits. Other reasons given for the financial bottlenecks were miscalculations and underestimations of the effort due to the lack of experience in overall plant construction.
>>> Insulating material producer Brucha insolvent: 500 employees affected
As a result, attempts were made to improve the financial situation by creating a restructuring concept. However, this was not successful in the long term. The restructuring concept was based on a correspondingly forecast order volume, which, however, could not be achieved. There are no plans to restructure or continue the company, but current orders will be completed if start-up financing can be provided. If this is not the case, the closure of operations has already been approved in the opening application.