BDO Legal and BDO Restructuring accompany Schlemmermeyer, a traditional brand, throughout its successful restructuring process
10 December 2019
In the context of self-administration proceedings lasting just six months, the traditional brand Schlemmermeyer was restructured due to a new investor being included by means of an insolvency plan.
In its original structure, Munich-based Schlemmermeyer GmbH & Co. KG was active as a delicatessen provider, employing around 204 staff members and running 26 branches. In 2017/2018, the company generated sales of around €16.8 million.
Against the backdrop of decreasing footfall in city centres, high rent liabilities from the past and changing buying behaviour, Schlemmermeyer had to streamline its structure and adapt its branch portfolio to the market-specific conditions. Schlemmermeyer also has intentions to grow again in the future by granting licenses and franchise concepts for trade and gastronomy. An application was submitted to Munich District Court for the self-administration proceedings at the end of May 2019. The restructuring consultants at BDO Legal Rechtsanwaltsgesellschaft mbH and BDO Restructuring GmbH supported the self-administration proceedings. Dr Michael Jaffé (of the law firm JAFFÉ Rechtsanwälte Insolvenzverwalter), the trustee appointed by Munich District Court, oversaw business management in the creditors’ interest in the context of continuation of the business and assisted the creditors with drawing up the insolvency plan.
In addition to attracting external investors, one fundamental element of the restructuring concept was adjusting the branch structure so as to ensure that most jobs and the profitable branches were safeguarded, and to achieve maximum creditor satisfaction. This is guaranteed by the restructuring solution implemented as part of the insolvency plan. 12.18. Investment Management GmbH, a Düsseldorf-based investor group, has now taken over the company following the successful restructuring process and will drive forward the brand’s future development. As a result of this, the company has a strengthened capital base and sustainable prospects for the future in line with the insolvency plan concept.
‘We have initiated, structured and implemented a rapid restructuring process with self-administration, all the while safeguarding 157 employees’ jobs at 16 locations,’ affirmed Roman-Knut Seger, a restructuring consultant at BDO Legal, who firmly believes that an ‘excellent result’ has been achieved in the creditors’ interests.
The insolvency plan was accepted by all groups at the creditors’ meeting held on 29 November 2019 and confirmed by the Munich Insolvency Court.
‘The creditors’ unanimous vote clearly illustrates that restructuring by way of insolvency proceedings was the best solution in the interests of everyone involved. This is particularly true with respect to job preservation too,’ summed up the trustee Dr Michael Jaffé.