German companies face insolvency amid rising costs

Several German businesses are facing insolvency due to high energy, raw material, and personnel costs.

Bäckerei Moos, a bakery chain with 59 locations in Central Hesse and the Rhine-Main region, has applied for a protective shield insolvency proceeding. The company, which employs approximately 480 to 500 people, cites the inability to pass on increased costs for flour and energy to customers as a primary factor.

In Unna, the logistics provider Fiege has initiated insolvency proceedings for its operating company. This move puts approximately 1,250 jobs at risk due to the site's heavy reliance on Galeria, a department store chain currently in crisis. While an agreement secures operations until the end of 2026, the long-term future remains uncertain.

Additionally, the Bavarian food producer Völpel, which specializes in dried herbs and teas, has filed for insolvency. The company, employing nearly 60 people, is currently searching for investors to stabilize operations following significant increases in energy costs and bureaucratic delays in solar energy expansion.