Bäckerei Neff secures future through restructuring

The traditional Karlsruhe-based bakery chain Bäckerei Neff has secured its future through a successful restructuring following insolvency proceedings. Creditors have approved a plan that allows the company to remain in family ownership under a new entity, Bäckerei Neff GmbH.

Simon Reich, representing the fifth generation of the founding family, will lead the company. While the restructuring ensures the continuity of the 122-year-old tradition, it involves a significant reduction in operations. The company will move forward with a leaner structure, operating 11 of its previous 19 locations across Karlsruhe, Weingarten, and Rastatt. The central production site in Karlsruhe will remain active.

The restructuring results in 140 employees retaining their positions, though 30 jobs will be lost due to the closure of several branches. The company cited economic pressures common in the baking industry—including increased costs linked to the war in Ukraine, rising energy prices, labor shortages, and increased minimum wages—as contributing factors to its previous financial instability.