The German textile recycling company Soex, based in Bitterfeld-Wolfen, has filed for bankruptcy. More than 460 employees are affected, though the business will continue operating while searching for a new investor.
Soex, a company specializing in textile recycling for over 20 years, has filed for bankruptcy. The company transforms used clothing into products such as cleaning cloths, blankets, and insulation materials. An insolvency court has approved the application and appointed a law firm to manage the proceedings. Oliver Dankert and Harald Ick from the Görg law firm will oversee the process.
Dankert explained, “The workforce has been informed that we aim to push Soex’s future strategy with a new investor,” emphasizing the structured approach they are setting up to sell the company. Soex CEO Fred Ponath added that the company is well-prepared for upcoming legal developments in the European Union, such as the extended producer responsibility initiative and mandatory separate textile collections starting in 2025. These changes, Ponath believes, present growth opportunities in the sustainable textile recycling sector.
Operations to continue, search for investor begins
Despite the bankruptcy filing, Soex’s operations are set to continue as usual for the time being. The company assured employees that wages and salaries are secured through November while the search for an investor is underway. In recent years, Soex has generated an annual revenue of around €60 million. However, Ponath cited increased competition from Asia and the loss of traditional markets in Eastern Europe as significant factors contributing to the company’s financial difficulties.
Alongside the main facility in Bitterfeld-Wolfen, Soex operates another plant in Ahrensburg, Schleswig-Holstein, which is also affected by the self-administration process.
Past labor disputes and union concerns
In the past, Soex has faced strikes due to low wages, with union representatives also criticizing the company’s policies on holiday and Christmas bonuses, as well as its retirement pension plans. These labor issues have added to the challenges faced by the company over recent years.
