More than 100 years after it was founded, an automotive supplier files for self-administration bankruptcy. The good news: Business operations and employee wages are secure.
Johann Vitz GmbH & Co. KG applied to the Wuppertal district court for self-administration proceedings, which the court approved. The aim of this measure is the necessary realignment of the company from Velbert, which is in an economic crisis.
According to INDat, the company, as a supplier to the automotive and electrical industries, is heavily affected by current market conditions.
“We urgently need to reduce our costs and improve operational profitability,” explains restructuring expert Prof. Dr. Dirk Andres. He was appointed managing director to drive the restructuring process forward.
Vitz and Gänz will remain with the company in an advisory capacity
The INDat further reports that Dr. Jens M. Schmidt accompanies the proceedings as provisional administrator and protects the interests of the creditors.
Michael Vitz and Harald Gänz have withdrawn from management, but will remain with the company in an advisory capacity. Business operations and the wages of the 265 employees are secured.
