Adcuram-backed Poggenpohl files for insolvency

Manuel Sack of Brinkmann & Partner has been appointed as provisional insolvency administrator.

The insolvency filing follows a significant fall in the company's revenues during the coronavirus crisis, although they had been stable prior to this, according to a statement. The ensuing liquidity problems were not significantly mitigated by the adjustment of the company's production capabilities and the use of Germany's Kurzarbeit scheme (equivalent to the UK's furlough scheme).

Poggenpohl was not able to qualify for Germany's state-backed coronavirus loan programme as it was already in the process of restructuring, according to the same statement.

The company plans to seek new investors, and business will continue during the process. Salary payments for its staff from April until June 2020 have been secured via pre-insolvency financing, according to a statement.

Poggenpohl was established in 1892 and is based in Herford, Germany. The company designs and manufactures kitchen fittings and furnishings. It had established a joint venture to expand to Asia in 2019. The company has 36 retail stores and employs 270 staff in Germany.

Adcuram bought a 98.57% stake in Poggenpohl in December 2016 in a deal valued at €10m. The company generated revenues of €110m and employed 500 staff at the time of the investment. The company reported revenues of €41.9m in 2018, according to Northdata.

The GP planned to support the company's growth by expanding its product portfolio and optimising its production processes.

Adcuram declined to comment.

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