Overview
- The family-owned Steiner Plüsch filed for insolvency in mid-October and the Amtsgericht Erfurt has named lawyer André Rombach as the preliminary insolvency administrator.
- Rombach says the Georgenthal factory is continuing to fulfill customer orders while he assesses restructuring options and begins a search for potential investors.
- About 20 employees remain at the site and their wages are covered in the near term through the prefinancing of insolvency pay known in Germany as Insolvenzgeld.
- Company leaders and observers point to competition from lower-cost overseas producers, higher raw-material and production costs, and weak domestic demand as the main reasons for the collapse in profitability.
- Steiner Plüsch traces roots to 1889 and has a niche in hand-crafted plush for collectors and film and TV productions, a specialization that gives the business cultural value but also raises the cost hurdles any buyer would face.