Only a year ago, Devolo managed to avoid the risk of insolvency through restructuring and the takeover of the company by the Harpers family, but now another restructuring process must be initiated after the order quantity suddenly decreased at the end of September due to the reluctance of end customers. To buy.
Once again restructuring procedures are self-administered
Therefore, devolo GmbH, known among end customers for its power line network devices, once again initiated restructuring proceedings under self-management. Through the restructuring process, the Aachen-based company wants to reorganize itself economically. Commercial operations will continue to operate at full capacity during this period, and the supply of goods to customers will be ensured, as well as the continued provision of all services, according to Devolo.
In the coming months, Devolo will work with stakeholders and consultants to develop a detailed restructuring plan that includes measures to restructure the business. Cost savings will also be necessary, although the company has not yet announced how this will be implemented. As part of restructuring under self-administration, which is permitted by German restructuring law after examination by the responsible local court, if the company in question acts on its own initiative early before insolvency and there is sufficient scope for a successful resolution, the administration remains liable. Responsibility for managing the company. However, a trustee will be appointed to monitor the reorganization in the interests of creditors. For the position of interim director, Dr. Ruth Rigul from the restructuring law firm PLUTA Rechtsanwalts GmbH.
In the self-management process, Devolo is also supported by restructuring expert Daniel Mann and his team from AMBG (Adiutor Management and Consulting Company mbH) from Naumburg an der Saale, as well as Dr. He accompanied Sebastian Braun (Rechtsanwälte PartGmbB).
Reorganization and business prospects
The company was already in self-administration proceedings in 2022, which were filed in November 2022 following the completion of an insolvency plan. Despite the negative global economic conditions, sales of devolo GmbH initially developed as planned in the first months of 2023. Management therefore felt assured that the restructuring process that had already begun would remain successful in the future. However, at the end of September, the number of orders suddenly decreased due to the reluctance of end customers to purchase, according to Devolo. It fell well short of high sales expectations for the traditionally strong Christmas business.
That’s why we will act responsibly and early now. We will adapt the measures we have already introduced to the new situation. It is important to put Devolo on a more stable and crisis-resistant foundation. On the one hand, devolo will implement a cost-savings program and, on the other hand, develop new product solutions for new business opportunities in the B2C and B2B sectors.
Heiko Harpers, CEO of devolo GmbH
