‘Insolvency does not mean the story is over’: Poggenpohl continues trading as it looks for a new buyer
Parent company, Poggenpohl Möbelwerke GmbH, has seen a ‘considerable decline in orders and sales since the outbreak of the Covid-19 pandemic’
Premium kitchen brand Poggenpohl has announced that it will continue to trade, despite filing for insolvency in Germany.
The company is the first high profile kitchen brand to collapse under the coronavirus market downturn, but has stressed that it plans to continue restructuring as it begins its search for new investors.
Administrators noted that parent company Poggenpohl Möbelwerke GmbH had seen a ‘considerable decline in orders and sales since the outbreak of the Covid-19 pandemic,’ but stressed that Poggenpohl’s business had been stable following the restructuring of the company over the past two years.
In a letter to retailers, managing director Gernot Mang said that whilst the company is not eligible to take advantage of German government aid, it will continue to trade as it looks for a buyer. The letter read:
'We would like to reassure you that insolvency does not mean the Poggenpohl story is over and that our working relationship has come to an end. On the contrary, we aim to keep the company and the Poggenpohl brand going and to place even more focus on you, the independent dealers and distributors, as our most important sales channel.
'Our relationship with you is crucial for the success of this search for investment. Even more so, it is an essential element of getting Poggenpohl back on track.
'We are therefore asking you to stick with us during these difficult times and for us to continue on this path together.
'Other important sales channels include the company’s own flagship stores, retail outlets, kitchen studios and project business with larger construction units. In addition, Poggenpohl had successfully strengthened its distribution network in Asia by setting up a joint venture for sales at the end of 2019.
'As a result, the order books for the second half of the year are also well filled. As part of the insolvency proceedings, the aim will therefore be to continue the restructuring of Poggenpohl and preserve the company as well as the brand.'