The management of seating manufacturer himolla Polstermöbel, headquartered in Taufkirchen, Germany, has filed for a "protective shield proceeding" – a restructuring process under court supervision that it hopes will enable it to reposition the business in the market.
“The goal of these proceedings is to navigate the market downturn and restore our competitiveness,” says himolla's MD, Manfred Ziegler. “We will continue to fulfil all orders as planned and remain a dependable partner to specialty furniture retailers – our core sales channel, and the lifeblood of our business."
Tillmann Peeters, restructuring expert at consultancy FalkenSteg, which is handling the application, adds: “Under the protective shield, we have the time and legal protection we need to reposition the company. Management remains fully able to act.”
himolla's subsidiaries and sites in Poland, Romania, Slovakia and Hungary are not directly affected by the proceedings filed in Germany.
The manufacturer says that filing the petition was necessary due to continent-wide subdued consumer demand, sluggish construction activity, and aggressive price competition from low-wage countries: "In recent years, himolla has been able to keep its market share stable despite sharply declining revenue, thanks to its strong brands, high-quality products, and a highly motivated team. Even so, the restructuring steps taken to date have not been enough to offset the revenue shortfalls and resulting losses."
Employees have already been informed that this summer's wages will be secured through insolvency wage payments, funded by the Federal Employment Agency.
