A notable European company in Plößberg, Germany has filed for insolvency at the Weiden District Court. With its main focus on wood processing and modular construction and employing over 3,000 people, The Ziegler Group is one of the largest employers in the region, It also operates Europe's largest sawmill in Plößberg, employing around 700 people.
The bankruptcy has come as a surprise to many, with local residents expressing concern about the potential impact on the regional labour market. Some speculate that the company's aggressive growth strategy may have overstretched its resources.
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In response to the insolvency, Volker Böhm, the provisional insolvency administrator, is examining the situation and exploring options for restructuring. His goal is to preserve as many jobs as possible and keep operations running smoothly. Initial assessments suggest that there is a good chance for the group to be restructured through insolvency proceedings. While some of Ziegler's over 30 subsidiary companies might also face insolvency, Böhm aims to minimise job losses.
The reasons for the bankruptcy are linked to Ziegler's rapid expansion, including the acquisition of smaller companies and sawmills in Romania and Sweden. However, the group was significantly impacted by the collapse of the construction industry following the war in Ukraine, leading to financial difficulties.
Source: www.br.de