• Recovery & Insolvency

  • Craft

  • Schwerin 2024

Baeckerei Armster: BBL successfully completes self-administration insolvency

On 19 June 2023, the long-standing Armster bakery in Kyritz, north-west Brandenburg applied for the opening of debtor-in-possession restructuring proceedings. Matthias-Christian Armster, the owner of the family business with its 24 branches, was advised in the proceedings by lawyers Vanja Alexander Kovacev and Dr Rouven Quick, who acted as general representatives, next to lawyer Georg Schloenbach from BBL. The local court-appointed lawyer Dr Christoph Schulte-Kaubrügger from the law firm White & Case was the administrator, supported by colleagues and lawyers Gordon Garz und Nicolas Rebel.

Developed by BBL, the restructuring plan was unanimously accepted by creditors in April 2024 and confirmed by the Neuruppin local court. Since the start of the restructuring process, business operations have continued as usual. 18 of the long-standing business’s 24 original local branches, as well as the production facility, will continue running as usual, meaning that 120 of 134 employees will continue to be employed. The successful restructuring allows the Ostprignitz-Ruppin region to retain a long-established family business and one of the last artisan bakeries.

Founded in 1880, the Armster bakery is now in its fifth generation of family management. Its branches are located in Brandenburg and northern Saxony-Anhalt. The business ran into financial difficulties due to its energy-intensive operations coupled with the significant rise in energy costs and raw material prices.