CEO Wilfried Kröger wrote to employees on Friday (19 July) explaining that the Rahden-headquartered business had begun preliminary self-administration proceedings.
The factory and foundry in Rahden, North Rhine-Westphalia, is currently mid-way through its annual two-week shutdown, with a skeleton staff remaining to handle any urgent customer requirements.
The facility employs around 650.
The group also has a factory in Krostitz, Saxony, with a team of 25.
Kolbus UK managing director Greg Bird told Printweek that subsidiary businesses including Kolbus UK and Kolbus AutoBox were not included in the administration.
He said: “Initial meetings have begun this week with the appointed administrator who will consult and work with the existing management team in Rahden, as the directors remain in control of the company and use this period to restructure the Kolbus group to ensure the company can continue to offer high quality production solutions and customer service in the future.
“During this period Kolbus UK and Kolbus AutoBox continue to operate as normal and we will ensure customers, suppliers and stakeholders are informed as developments regarding the group restructure are available.”
Kröger said that product development, production and sales would continue unchanged during the restructuring period, which could last up to three months.
He said the process provided the necessary flexibility for a sustainable restructuring to take place, “in the interests of the community. workers, creditors, suppliers and service providers as well as customers”.
Restructuring expert Stefan Meyer of Pluta Rechtsanwalts has been provisionally appointed as trustee, with lawyer Maximilian Michelsen appointed as general representative lawyer.
“Our top priority is to preserve the substance of the company and create a sustainable foundation for the future,” Michelsen said.
“Through targeted restructuring and close cooperation with everyone involved, we want to ensure that the company emerges from the crisis stronger and can survive successfully on the market in the long term.”
Family-owned Kolbus has a history dating back 249 years. The business was originally established as a smithy in 1775 by Christian Henrich Kolbus, who had been a farrier and shoeing smith in the Prussian army.
In recent years the firm has switched its emphasis to packaging. It sold its perfect binding and book line business to Muller Martini six years ago.
Later the same year Kolbus acquired UK corrugated box manufacturer AutoBox Machinery.
Since then Kolbus has focused on equipment for automated box production for luxury packaging, retail packaging, corrugated box making, specialist kit for games manufacturing and for making book and notepad cases.
The group reported a successful Drupa, with “huge interest” in the BX Motion Pro for short-run corrugated box production with inline inkjet printing and gluing.
It also recently sealed the first European sale for the new four-colour Kolbus RD 1155 modular rotary die-cutter with flexo printing.
Kröger noted that project contracts made at Drupa and since the show could now be “implemented unhindered by the self-administration process”.
According to local reports in Germany, Kolbus had sales of €73.3m (£62m) in 2021 and reduced its losses to €1.4m compared with €10.7m the prior year.
The insolvency process means that salaries and wages are guaranteed via the Federal Employment Agency for July, August and September.
