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NolteD files for insolvency protection proceedings

24.05.2016 − 

The German bedroom furniture manufacturer NolteD applied for insolvency protection proceedings under its own administration with the Paderborn District Court on 10 May. Stefan Meyer from the law firm Pluta Rechtsanwälte from Lübbecke was named interim administrator. NolteD’s managing director Werner Farke will stay in office during the restructuring process. In the future he will be assisted, however, by lawyer Andreas Elsäßer from the law firm Schultze & Braun in Achern as chief restructuring officer. NolteD’s current 210 employees were informed of this development on 11 May 2016. Production and the delivery of orders is to continue for the time being. By entering insolvency protection proceedings under its own administration, the company aims to draw up a reorganisation plan based on restructuring measures instituted in re-cent weeks and also look for additional potential investors for the firm. The first talks with candi-dates are already in progress. According to Mr Farke, the reorganisation plan will mainly focus on NolteD’s specialisation in modular and loung-ing furniture for bedrooms.

Mr Elsäßer said that the petition was connected to a reduction in revenues at the fourth-generation family-owned firm caused mainly by pressure on prices exerted by Eastern European competitors, especially Polish companies. Lower wage costs meant that Polish firms manufactured at much cheaper costs than their German coun-terparts. The efficiency of its operational proc-esses should now be reviewed given the low level of automation in manufacturing at NolteD. The company generated revenues of approxi-mately €30m in 2015, down from €35m in 2014. Mr Elsäßer said that it had once booked revenues of €110m – almost three times higher – in its heyday. Mr Elsäßer also cited the trend towards box spring beds as another reason for the decline in revenues. NolteD has not made box spring beds up until now.

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