Bed and table linen manufacturer Curt Bauer insolvent

The textile company Curt Bauer in Aue with around 100 employees is in financial difficulties. The manufacturer of table and bed linen, clothing damask and technical textiles has filed for insolvency, a spokeswoman for the Chemnitz district court said on Tuesday in response to an inquiry. The provisional administrator has been commissioned to draw up an expert opinion on the company's assets.

Business operations will continue in full and employees' wages and salaries are secured until at least the end of June, insolvency administrator Rüdiger Bauch announced. The aim is to restructure the company over the course of the summer. An investor is also being sought for this purpose.

The financial problems were attributed to the consequences of the coronavirus pandemic and the war in Ukraine. On the one hand, orders have declined due to the reluctance of many consumers to buy. On the other hand, costs for raw materials, input materials and energy had risen sharply, it said. The "Freie Presse" and Radio Erzgebirge had previously reported on the insolvency.

The textile company C.H. Müller from Heinsdorfergrund in Vogtland is also struggling with financial problems. It manufactures composite material made of plastic, real and artificial leather, which is used in cars, trains and airplanes. According to the provisional insolvency administrator Dirk Herzig, the wages and salaries of the 280 employees are initially secured until the end of June thanks to the insolvency substitute benefits. The aim is to preserve the company, he emphasized in a statement.

The Association of the North-East German Textile and Clothing Industry warned of the risk of insolvencies just over two weeks ago. The industry is suffering from high costs, for example for energy. Most members also complained about falling sales and declining incoming orders, it said. This was already clearly evident at the end of 2023. In January 2024, the decline in turnover compared to the same month of the previous year was eleven percent.