Kahla and Senator file for insolvency

Both sister companies have independently filed for insolvency proceedings. Business operations at both companies will continue as normal.

The long-established porcelain manufacturer Kahla has filed for insolvency at the Gera District Court. With this step, the company aims to create the legal framework to reorganise its financial structure, secure the long-term future of its production site and position itself for stability in the future.

Despite the insolvency application, Managing Director Daniel Jeschonowski is optimistic: “Over the past five years, we as the Kahla team have achieved a great deal and created an outstanding brand experience. We are on the right track entrepreneurially, but will have to achieve more growth in the future.”

Kahla has been undergoing comprehensive restructuring since 2020. In addition to simplifying processes, new customers have been acquired since then and the expansion of the online business has contributed to a significant strengthening of the sales base in recent years. Not least because of this, the Kahla brand has a good position in the market.

Operations continue

The insolvency administrator appointed by the Gera Local Court, Thomas Jacobs from the law firm Brinkmann & Partner, is already on site with his team and has held initial talks with managing director Daniel Jeschonowski and works council chairman Stefan Schau. “My first impression is that the management and workforce are firmly behind the Kahla/Thuringia porcelain factory. This is important in order to continue production and delivery as planned during the application process and to develop a plan for the future,” said the insolvency administrator in a company statement. Despite the insolvency, business operations are continuing as usual and new orders are being accepted, confirmed and executed. The 120 employees will receive insolvency payments in the coming months. The necessary pre-financing has already been initiated.

Economic situation reason for insolvency application

The company, based in the Thuringian town of the same name, cites economic uncertainty in Germany as the reason for the insolvency application. The trade fair and order season has been significantly weaker than expected so far. In addition, there is a noticeable reluctance to spend in the catering sector, and the renewed sharp rise in energy prices is placing a considerable burden on energy-intensive manufacturing companies such as porcelain manufacturers.

Senator also files for insolvency

Shortly after Kahla, its sister company Senator also filed for insolvency at the Darmstadt District Court. The stationery manufacturer justified the move with the associated opportunity to realign its financial structure and put the company on a stable footing for the long term. Operational business activities are also continuing as normal. New orders are being accepted and, according to the company, are being fulfilled reliably and as agreed.