120-Year-Old Mayer & Cie. Files for Insolvency Amid Global Crises
Mayer & Cie., a 120-year-old German family business, has filed for insolvency. The company, known for its circular knitting machines, has faced severe challenges due to global economic crises, trade tensions, and aggressive competition from Chinese textile machines at dumping prices. Despite the setback, the company's management will retain control, and operations will continue with the help of provisional administrator Ilkin Bananyarli and restructuring expert Steve Martin.
Steve Martin has stepped in to provide financial support, bringing 100 million euros to help balance the company's backlogs. This comes as Mayer & Cie. struggles with a nearly 50% sales decline, primarily due to the trade conflict between the USA and China, the war in Ukraine, and inflation in the Turkish market. The company has already implemented short-time work for its 280 employees since 2023 to manage the decreasing orders. Employees will receive insolvency benefits from the employment agency for the next three months.
The family business, owned and operated by the Mayer family for four generations, has faced intense competition from Chinese textile machines at dumping prices. This has led to a significant drop in sales, threatening the company's future. If Mayer & Cie. is not back on track within three months, closure may be imminent.
Mayer & Cie. has filed for insolvency in self-administration, seeking to restructure and overcome the challenges posed by global economic crises and intense competition. With the support of Steve Martin and the provisional administrator, the company aims to stabilize its financial situation and secure its future, ensuring the continuation of its 120-year legacy.
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