Scheufelen files for insolvency again
Friday, February 22, 2019
German paper mill Scheufelen has filed for insolvency again, according to German media reports.
The Lenningen-based company was resurrected as Scheufelen GmbH in July 2018 after securing investment from Berlin-based Green Growth Fund 2/Wermuth Asset Management, Hamburg-based Nordia Invest and Scheufelen Equity Partners. Its predecessor Papierfabrik Scheufelen had filed for insolvency at the end of January 2018.
While all production was stopped temporarily during the insolvency process, the investment enabled the production of the company’s grasspaper product, which is made from grass fibre and pulp, to continue, albeit under the watch of a reduced staffing of 100, down from the 340 that worked for Papierfabrik Scheufelen.
In December, the business revealed that further investment in the company had increased its capital base to scale up production for food packaging, enabling it to ramp up the production of grasspaper.
The German press has now reported that the company filed an application to open insolvency proceedings again on Wednesday (20 February). EUWID Papier und Zellstoff said production at the site is currently at a standstill, with 100 employees affected.
Print.de said the company cited “a much slower rate than expected” increase in sales of grasspaper as a reason for the bankruptcy and that the business could not avoid the insolvency, even though investors would have been prepared to inject “several times fresh money”.
Esslinger Zeitung, meanwhile, said the wages and salaries of the 100 staff are secured until 1 May. It added the company was producing 500 to 1,000 tons of grasspaper per month but that at least three times that amount would be necessary to be economical and that, due to the low sales, investors had to pay a higher six-digit sum per month.
The publication reported that Scheufelen said it would be able to produce large quantities of packaging from grasspaper but that the company has been lacking an anchor customer and bulk buyer who relies on the product.
PrintWeek was unable to reach Scheufelen for comment at the time of writing.