Zanders Paper continues restructuring process by filing for insolvency
Covid-19 pandemic burdens business operations in 2020 after successful transformation in 2019
Mar 1, 2021
After a successful year of transformation in 2019, Zanders Paper posted a strong first quarter of 2020; then the coronavirus pandemic hit the global economy and led to a significant decline in sales of specialty papers for consumables. The various effects of this challenging situation could not be compensated completely by the German company despite the increased operating profitability and the fundamentally good set-up and positioning.
Taking these circumstances into account, the Zanders Paper management has decided to carry out the continuation of the long-term restructuring of the company within the framework of insolvency proceedings and today filed an application to this effect with the competent district court in Cologne. This is done to protect the interests of all stakeholders including but not limited to the employees, creditors, customers and the City of Bergisch Gladbach. This gives Zanders Paper a breathing room to further rebuild and shape the company for the future.
During the opening insolvency proceedings, which are expected to last two to three months, business operations will be continued by the insolvency administrator. He will receive the full support of the management and the owners. The employees will be protected, wages and salaries will be secured through the insolvency payments, and all products will continue to be produced. This includes in particular the ranges of Chromolux paper and board, Zanlabel, Zanpack, Silver digital, Zanjet, and Zanbarrier.
Everyone involved is convinced that the upcoming reorganization will give the company the opportunity to undertake and implement all necessary measures to further improve the profitability and thus the sustainable competitiveness. The management and the workforce as well as some key suppliers and customers have already signaled their support. An independent business review commissioned in advance confirms the company’s good future prospects based on a state-of-the-art machinery, a unique expertise in paper manufacturing, and a wide product portfolio including strong brands like the world famous Chromolux.
The Zanders Paper team will contact all customers, suppliers and partners to confirm the details and next steps of the proceedings soon.