BERLIN (AA) - Thilmann Brot, a German bakery chain, has filed for insolvency due to the energy crisis, local media reported on Thursday.
The family business was founded in 1937 and has 20 bakeries in Koblenz city and the surrounding area in southwestern Germany.
Jens Lieser, the Insolvency administrator, cited the considerable price increases for raw materials and personnel, and the sharp rise in energy costs as the reason for the economic downturn, according to chip.de news website.
"The entire baking business is in a difficult situation, but it hits the smaller and medium-sized bakeries like Thilmann Brot particularly hard. Nevertheless, I definitely see opportunities for the Thilmann family business, since bread products are fundamentally indispensable and a re-organization with the instruments of the insolvency code can also be the start of a new beginning," the insolvency administrator told local media.
In Germany, the list of insolvent bakery companies is getting longer and longer.
Back in June, the bakery chain Hampe GmbH from Neunkirchen filed for insolvency for its 19 branches in the Siegerland region. This was followed in the same month by Brot Manufaktur Gaues in Hanover. The large bakery Stohr-Brot from Dinklage and the traditional bakery Otten from Bremen also went into insolvency.
Germany, the EU’s largest economy, is facing the biggest energy crisis ever, due to the ongoing Russia-Ukraine war, which led to disruptions in gas supply, pushed energy prices to record highs.