Major bankruptcies hit the metal industry hard | Number of major bankruptcies increases significantly in 2019, more so than in a number of years.
There was also one bankruptcy in the fourth quarter with the steel company Hoesch Schwerter Profile, a company with sales of more than 100 million euros – that is below average; the average for the first three quarters was seven. Instead, the wave of insolvencies hit companies with a turnover of between 50 and 100 million euros. Eleven companies, more than twice as many as in the third quarter, filed for insolvency in the fourth quarter.
Noteworthy: Of the five biggest bankruptcies in the fourth quarter of 2019, three were in the metal industry. In addition to Hoesch Schwerter Profile, which went into regular insolvency with sales of 102 million euros and 412 employees, metal technician Schlemmer, a portfolio company of PE investor 3i, was also affected. The Aschheim-based company, which most recently generated sales of 79 million euros with 431 employees, also opted for the regular insolvency. Third in the group is the Bavarian sheet metal and steel producer Bader with 40 employees and sales of 78 million euros. This medium-sized company is undergoing restructuring as part of a provisional debtor-in-possession management.
FalkenSteg partner Johannes Neumann-Cosel explains the reasons why the metal industry in particular has been so badly shaken recently in a detailed interview.
You can also find further issues in the FINANCE-insolvency-report archive.