Collection C Möbelvertriebsgesellschaft mbH Weimar filed an application for the opening of insolvency proceedings with the Erfurt Local Court on December 27, 2022.

Marcello Di Stefano von Diligens, a specialist in insolvency law and restructuring, was appointed as the provisional insolvency administrator.

Business operations will be continued in full. Wages and salaries are secured.

In addition to the general consumer slump, which has also fully affected the furniture industry in 2022, the main reasons for the step into insolvency proceedings are significant delivery delays of an important production partner and the payment arrears of a major customer.

"All efforts to close the resulting liquidity gap have unfortunately not led to success, so that the insolvency application became inevitable," said the managing director Ralf Hentschel.

The essential task for the Collection C team and the provisional administrator in the coming weeks will be to secure the order backlog, which has grown strongly again, together with suppliers and customers. The strategic focus will be on strengthening Collection C's market position as a licensed brand distributor for LEONARDO and Villeroy & Boch with the involvement of new investors.

"Now it's a matter of stabilizing the company and initiating a sustainable turnaround" says Di Stefano, the provisional insolvency administrator.