The wave of insolvencies in Germany has claimed another major automotive supplier, Mürdter, based in Baden-Württemberg. The company’s future, along with that of its employees, remains uncertain.
Germany’s automotive industry has been hit once again as another leading supplier, Mürdter, based in Mutlangen, Baden-Württemberg, has filed for insolvency. This development follows the recent insolvency of another auto supplier, Recaro, and adds to a growing list of major companies across various industries facing financial difficulties in Germany.
According to official documents from the Aalen District Court dated August 5, both Mürdter Metall- und Kunststoffverarbeitung GmbH and Mürdter Werkzeug- und Formenbau GmbH have submitted applications to initiate insolvency proceedings. The court has appointed lawyer Arndt Geiwitz from Ulm as the provisional insolvency administrator for Mürdter Metall- und Kunststoffverarbeitung, while Patrick Wahren has been named the provisional administrator for Mürdter Werkzeug- und Formenbau. Both administrators are from the law firm Schneider Geiwitz, which has gained prominence in Germany for handling significant insolvency cases, including the high-profile collapse of the Signa Group and the Galeria Kaufhof department stores.
Uncertain future for Mürdter employees amid insolvency
The future of Mürdter and its employees remains unclear. According to the newspaper Rems-Zeitung, even the insolvency administrators are still in the early stages of the process, making it difficult to provide further information or outline a plan for the company’s restructuring or liquidation. The exact number of employees affected by the insolvency is also uncertain.
Following the acquisition of the Mürdter Group in 2021 by Xandor Mürdter Automotive GmbH, a subsidiary of the British investment firm Quantum Capital Partners, the company employed 285 workers at its Mutlangen location. Across its four sites in Germany and the Czech Republic, Mürdter had a total workforce of around 585 employees.
For 30 years, the company was led by brothers Normann and Robert Mürdter, who served as managing directors. Speaking about the 2021 acquisition, Normann Mürdter explained that the decision to sell the company to Xandor was made due to the lack of a succession plan: “We decided to integrate our company into a larger group and sell it to Xandor,” he told the Schwäbische Post. The acquisition was intended to allow Mürdter to maintain operational independence despite the change in ownership.
Mürdter’s insolvency a blow to the automotive sector
While the specific reasons for Mürdter’s insolvency have not yet been disclosed, the company’s financial troubles are likely tied to the broader challenges facing the automotive industry. The Mürdter Group was considered a leader in its field, specializing in injection-molded parts, including door handles, backrests, and center console covers. The loss of Mürdter is significant, as it represents the second major automotive supplier in Baden-Württemberg to declare bankruptcy in recent times.
Growing trend of insolvencies in Germany
Mürdter’s insolvency is part of a broader and worrying trend of increasing bankruptcies in Germany since the start of 2024. A recent analysis by the consulting firm Falkensteg indicates that the number of major insolvencies in the first half of 2024 has risen by 41% compared to the same period in the previous year. “Rescuing companies from insolvency is becoming increasingly complex. High interest rates make acquiring insolvent companies more expensive or less attractive. Additionally, uncertain revenues due to the overall economic situation are deterring potential investors,” explained Jonas Eckhardt, a partner at Falkensteg.
Eckhardt predicts that this trend is likely to continue, leading to further insolvencies, including that of a 208-year-old traditional company. “Many companies must adapt in order to survive the dynamics of international trade,” he added.
