Traditional bakery Sternenbäck has announced the closure of its Hechingen production site by the end of 2024 amid a new insolvency proceeding. This decision affects the company’s 1,000 employees nationwide and raises questions about the future of its remaining stores.
The closure announcement came from CEO Frank Winter, who stated, “The Hechingen location will continue to operate until the end of the year at the latest.” This decision is part of a self-administered insolvency proceeding initiated in May to address rising costs. Founded in 1766, Sternenbäck currently operates 34 stores in Baden-Württemberg, all of which have been supplied by the Hechingen facility. While the future remains uncertain for most locations, the company has indicated positive developments for its production sites in Gera and Spremberg in eastern Germany, where continuation solutions are emerging.
Second insolvency in four years
This marks Sternenbäck’s second insolvency filing in four years, as the company grapples with dramatically increased costs for raw materials, energy, and personnel. During its first insolvency in 2020, the bakery chain was forced to close almost half of its store network to stay financially afloat. As explained by the Ebner Stolz law firm, which provides legal counsel to the company, “Loss-making stores naturally pull the company down even further during such a crisis. It was therefore necessary to shed this burden.” The current insolvency proceeding, initiated in May, aims to restructure the company in response to ongoing financial challenges.
