Halberstädter Sausages Files for Preliminary Insolvency

The long-standing German sausage maker, Halberstädter Würstchen, faces an uncertain future after its production company, Halberstädter Konserven GmbH, filed for preliminary insolvency. The district court in Magdeburg has appointed Karina Schwarz, a lawyer from Magdeburg specializing in restructuring, as the preliminary insolvency administrator.

Production at the company, which boasts over 140 years of tradition, has reportedly been at a standstill since the beginning of the week, according to the NGG food and hospitality union. The owner family had announced in April their search for a buyer for the production facility and the Halberstädter brand, after having led the company for 35 years.

Company representatives had previously cited "extremely difficult liquidity" and failed financing as key issues. The broader corporate group, which also includes a hotel operation, employs around 150 people. The company has been hit by increased costs for energy, meat, and personnel, and the production company has struggled in a competitive and declining market. Halberstädter's product range includes canned meat and sausage, fresh products, soups, and ready-made meals.

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The liquidity is extremely difficult.