Mar September 7, 2022
Rising energy and input prices have forced the first major German producer to seek restructuring. According to the district court in Düsseldorf, the well-known toilet paper manufacturer Hakle has filed for insolvency proceedings.
The company, founded in 1928 and well known for its products also to Czech customers, was not able to transfer the increase in energy costs to retailers quickly enough, explains Hakle’s situation. Paper production is particularly energy intensive and wood has also become scarce and expensive. The newspaper Lebensmittelzeitung was the first to report this on Monday.
“Good morning from Germany, where production costs for toilet paper have skyrocketed. Hakle, a large German toilet paper manufacturer with a century-old history, filed for insolvency this week as “massive” increases in energy and pulp prices forced it into a corner,” he comments on the situation Welt’s economic expert on Twitter.
Due to skyrocketing costs, brand manufacturers demand higher prices. But this is strongly opposed by retail chains. Now the first big “bankruptcy” is happening. But Hakle can only be the first example. Experts expect a whole wave of bankruptcies if the phase of rising acquisition costs continues. Johannes Sausen, head of consumer goods and trading at IKB Deutsche Industriebank, points out that this is a sign of a deeper economic problem.