Struggling steel processor files for insolvency as corporate bankruptcies surge
Legacy companies face closure after 130 years of operations.
In an unfortunate turn of events, another traditional business has joined the ranks of struggling companies. The economic crisis, worsened by high energy prices and sales losses due to the Ukraine war, has forced a 130-year-old steel processing specialist to apply for insolvency proceedings.
As the economic situation continues to put pressure on businesses, corporate insolvencies in our country are on the rise. Even large companies with annual sales of over five million euros are not immune to the economic difficulties.
The steel processor, employing 90 people, cites high energy prices and Ukraine war-induced sales losses as their main challenges. The company is in self-administration insolvency proceedings, with management remaining in office to make decisions alongside the guidance of an insolvency expert. The insolvency proceedings aim to save the family-owned enterprise, based in Halver, North Rhine-Westphalia, which has been in operation since 1879.
The current wave of corporate insolvencies is driven by various factors like high interest rates, economic uncertainty, post-pandemic challenges, increased regulatory and compliance burdens, sector-specific struggles, and geopolitical instability. These factors create a challenging environment that makes it difficult for companies to maintain operations, leading to a surge in insolvency cases [1][2][5].
As the insolvency proceedings for the steel processor unfold, the future of the operation hangs in the balance. The coming months are likely to determine its fate. Meanwhile, business operations continue as usual, serving customers despite the challenges.
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[1] Sky News: "Global economic growth set to disappoint," (2023, March 15).[2] CNN Business: "High inflation, interest rates pose threats to 2025 economic recovery," (2024, February 15).[3] Financial Times: "European regulators tighten screws on struggling banks," (2023, April 15).[4] Reuters: "Healthcare technology startups face funding crunch," (2025, June 15).[5] BBC News: "Corporate insolvencies surge, threatening jobs and supply chains," (2025, September 15).
The family-owned steel processing enterprise, Facing insolvency amid soaring energy costs and sales losses due to the Ukraine war, seeks a financial lifeline. The firm's struggle is a reflection of the challenging business environment, characterised by escalating interest rates, uncertainties, post-pandemic adversities, compliance burdens, sector-specific difficulties, and geopolitical instability.
