Large furnace construction company in Germany unexpectedly goes bankrupt

Shocking news in Bavaria: A large nationwide fireplace and stove manufacturer has suddenly had to file for bankruptcy. The future does not look very rosy.

Neumarkt – The wave of bankruptcies in Germany is not stopping in Bavaria either. While the bankruptcy of a large real estate group, the bankruptcy of a 200-year-old traditional company and the bankruptcy of a well-known solar developer are keeping large parts of Germany on tenterhooks, the shock has been particularly deep in a community in Upper Palatinate since Friday (6 September). A well-known stove and fireplace manufacturer in the region, which also operates nationwide, is unexpectedly insolvent. This is reported by the Middle Bavarian Newspaper and the Nuremberg News approvingly.

One of the “largest furnace construction companies in Germany” is surprisingly insolvent: RAMFIRE Group sells company

“It is with regret that we have to inform you that the Ramfire Group filed for bankruptcy on June 19, 2024,” says the website of the insolvent company from Upper Palatinate in Bavaria. According to the information on the homepage, the company was in preliminary insolvency proceedings until August 30, before the company was sold on September 1. According to the Middle Bavarian Newspaper The insolvency administrator and lawyer of the Nuremberg law firm Schwartz, Jochen Zaremba, confirmed the process.

The insolvent stove company was founded in 2016. According to its own information, the Bavarian company was one of the “largest stove construction companies in Germany”. At least that was the dream of the then managing director, who had worked in the industry for many years.

Chimney and fireplace manufacturer files for bankruptcy: Several locations and sales offices in Bavaria affected

However, the insolvency administrator goes on to explain that a year ago, “not much was happening operationally” at the headquarters in Neumarkt in Bavaria’s Upper Palatinate. Aside from the headquarters, the company has other locations in Bayreuth and Heinersreuth in the Bayreuth district. There are also sales offices in Jena and Munich, which are part of the company structure.

Ramfire Kamine had only bought the locations in Upper Franconia a year ago and they were doing well, says Zaremba – also because the former, technically strong owner is still on board as a consultant.

Stove manufacturer in Bavaria is insolvent: Around 30 employees affected – location will be “difficult to maintain”

Due to this history, the current investor may have decided to take over all locations and continue business operations under a new legal entity. In addition, according to the insolvency administrator, it was particularly important to him that all employees had a perspective, at least in theory. Whether this will actually work out remains to be seen. Without operational business, every location is up in the air.

In total, the workforce at the various Ramfire Kamine companies recently totaled around 30 employees. However, Zaremba is not very optimistic about the company’s Neumarkt headquarters. It will probably be “difficult to keep”. There are several creditors of the company – they will now be written to and can register their claims, the insolvency administrator describes the current situation. However, as the amount of the respective payments is unknown, no statements can be made at this time. Furthermore, according to the company, it is currently checking which orders can still be continued by the purchaser of the Ramfire Group.

Well-known real estate group files for bankruptcy: Analysis shows worrying trend since the beginning of the year

However, the latest insolvency is part of a worrying trend that has been particularly noticeable in Germany since the beginning of the year. According to a recent analysis by the Falkensteg management consultancy, which IPPEN.MEDIA The number of major insolvencies rose by 41 percent in the first half of 2024 compared to the same period last year. “Rescuing companies from insolvency is becoming increasingly complex. High interest rates make the acquisition of insolvent companies more expensive or unattractive. “In addition, uncertain sales due to the general economic situation are deterring potential investors,” explains expert Jonas Eckhardt, partner at the Falkensteg management consultancy.

Eckhardt predicts that this trend will continue in the long term and that there will be further bankruptcies, such as at a traditional company, a leading grill supplier, an industry leader with 585 employees or a well-known bratwurst manufacturer: “Many companies have to change in order to be able to survive in the dynamics of international trade.”