# German bakery industry economic challenges > Developing situation record from CLSTR: https://clstr.news/situations/german-bakery-industry-economic-challenges > Updated: 2026-10-27T19:50:06.000Z. Sources: 22. Developments: 3. Traditional German bakeries are facing significant operational difficulties driven by rising energy, raw material, and labor costs, alongside competition from supermarket discount chains. In Lower Saxony, the family owned Kiess & Krause, operating since 1971, announced it will cease all operations by May 31, 2027. This will affect 10 branches and 120 employees. The owners stated that while the company is not in debt, high costs, low profit margins, and the inability to find a successor have made continuing the business a financial risk. Similarly, the 147 year old Lampe bakery is undergoing restructuring to emerge from insolvency. To stabilize the business, the company plans to close 12 locations, which effectively shuts down more than one third of its branches, and reduce its workforce by approximately 40 positions. In Hessen, the Bäckerei Moos chain, based in Aßlar, has applied for insolvency proceedings under a protective shield at the Wetzlar District Court. The company is seeking a restructuring process under self administration, which has received preliminary judicial approval. The insolvency affects 59 branches and approximately 480 employees. Management remains in office, supported by administrator Professor Dr. Jan Roth and restructuring manager Stefan Hofherr. Analysts attribute the crisis to rising costs for energy and raw materials, such as flour, sugar, and butter, alongside intense price competition from supermarkets. Moos specifically cited the inability to pass on increased costs for flour and energy to customers as a primary factor. Spokesperson Holger Voskuhl noted that while the business is not yet insolvent, production and sales are expected to continue as usual for the time being, with employee salaries for late 2026 expected to be covered by insolvency benefits. Further industry instability is seen in Steinheid, where the Bäckerei Anton family business declared insolvency effective November 1. ## Claims - Bäckerei Moos has applied for insolvency proceedings under a protective shield. (reported by 3 sources) - The Wetzlar District Court approved the application for restructuring. (reported by 3 sources) - The company operates 59 branches. (reported by 3 sources) - The company employs approximately 480 people. (reported by 3 sources) - Rising raw material and energy prices caused the financial difficulties. (reported by 3 sources) - Hartmut Moos stepped down from management in April 2024. (reported by 3 sources) - Chi Steinbach operates four cafes. (reported by 3 sources) - The minijob monthly limit is projected to be 633 euro starting in 2027. (reported by 3 sources) - Employer contributions for minijobs could rise to approximately 40 percent. (reported by 3 sources) - Employer contributions for full-time staff are currently around 20 to 25 percent. (reported by 3 sources) - The hospitality industry employed 951,078 minijobbers in the second quarter. (reported by 3 sources) - The hospitality industry ranks second in minijob employment, behind retail. (reported by 3 sources) ## Timeline ### 2026-10-27: Bäckerei Moos files for insolvency protection in Germany Traditional German bakery Moos has applied for insolvency protection for its 59 branches, citing rising energy and raw material costs as the primary drivers of its financial crisis. 8 sources. https://clstr.news/cluster/german-bakery-businesses-face-insolvency-challenges ### 2026-10-25: Bäckerei Moos files for insolvency protection in Germany German bakery chain Bäckerei Moos has applied for insolvency protection to restructure amid rising energy and raw material costs. 5 sources. https://clstr.news/cluster/bckerei-moos-files-for-insolvency-protection-in-germany ### 2026-10-21: German bakeries face closures amid rising costs and succession issues Rising costs for energy and ingredients, coupled with succession difficulties and supermarket competition, are forcing traditional German bakeries like Kiess & Krause and Lampe to close branches or cease entire 5 sources. https://clstr.news/cluster/german-bakery-sector-faces-structural-decline-and-insolvencies --- Cite as: German bakery industry economic challenges. CLSTR, https://clstr.news/situations/german-bakery-industry-economic-challenges