Elastic Textile Europe GmbH, based in the German town of Neukirchen, filed for insolvency at the District Court Marburg on July 26th.
One of the top European stretch fabrics manufacturers, the company’s management filed after an Asian partner terminated a successful, multi-year cooperation at short notice, leading to revenue loss and impending liabilities. However, Elastic Textile Europe plans to restructure and continue operations.
The District Court Marburg has appointed the lawyer Julia Kappel-Gnirs of the law firm Hermann RWS as a temporary insolvency administrator. A textiles industry restructuring expert, Kappel-Gnirs is presently speaking with company management to develop an idea of the overall economic condition. At a staff meeting, she also stated she will try to ensure the preliminary financing of wages and salaries.
Speaking to approximately 70 workers, Kappel-Gnirs stated: “In the interest of the motivated employees, customers and suppliers as well as the excellent product portfolio, I am committed to find a solution for the continuation of this long-established enterprise and to safeguard as many jobs as possible.”
Presently, business operations and production are running without restriction. Cooperation with the strategic partner SIA Lauma Fabrics, which has already expressed an interest in a takeover, will continue. Managing director André Jubel stated: “Our common goal is to sell the business to a suitable investor in order to achieve a definitive rehabilitation in this way. Thus, we hope that our long-standing customers, suppliers, employees and partners will remain loyal and continue to support us.”
Next, Ms. Kappel-Gnirs will speak with stakeholders, suppliers, customers, banks and employee representatives as part of the restructuring process. Elastic Textile Europe GmbH has been manufacturing elastic specialty fabrics since 1956, focusing on the apparel industry.