Employees of confectionery retailers Arko, Eilles and Hussel can breathe a sigh of relief: the bankruptcy proceedings were successful and the brands survived. An investor played a big role in this.
Nine months after bankruptcy, the reorganization of confectionery retailers Arko, Eilles and Hussel was successful. The Norderstedt District Court granted Arko GmbH, Hussel GmbH and J. Eilles GmbH & Co. Insolvency proceedings for KG were quashed.
About 300 branches with 1,300 employees have been rescued, according to a message from the Deutsche Confisserie Group in Holstein’s Wahlstad on Thursday. Apart from the branch business, the group also intends to represent even more in the food retail and online business in the future. As of now it has around 4,000 sales outlets in stable retail and bakery.
“We are extremely pleased that we have now successfully completed the restructuring process and positioned our company with a vision of long-term and lasting success,” said Group Head Patrick G. Weber.
Fresh money from Hanoverian tax advisor
Ellis Brand was not affected by the bankruptcy proceedings. It belongs to Darboven Coffee Group. Retail chain Elise, which runs under the umbrella of the group along with Arco and Hassell, is a licensee of the brand.
The confectionery retailer’s reorganization is largely thanks to fresh funding from sole investor Paul Morzinski, who joined Arco in 2014. Hannover’s tax advisor and auditor is also known as an investor in the Grand Hotel Heiligendamm on the Baltic Sea.
“I believe there is a bright future ahead of customer-focused retail,” Morzinski said. “Deutsche Confisserie Gruppe is emerging from the restructuring with a strong and clear vision.” In 2016 Arko von Darboven took over specialty stores of the Eilles brand and in 2018 the confectionery chain Hussel.
Special Insolvency Proceedings for Promising Cases
Rainer Eckert, the lawyer accompanying the insolvency proceedings, said: “We are delighted that we were able to bring the nationwide first COVID safeguard proceedings to a successful conclusion and are confident we have created a long-term solution for all involved. “
The insolvency process was carried out in self-administration after the application in mid-January. This type of insolvency law, which is intended only for promising cases, enables previous management to continue to run companies themselves under the supervision of a trustee.
