Famous Thuringian Porcelain Company Files for Insolvency - Historic Könitz Porcelain files for bankruptcy amid legal and economic pressures
Könitz Porcelain, a historic German ceramics company established in 1909, has filed for bankruptcy. This move comes amidst an ongoing costly legal dispute with a French business partner, posing an existential threat to the Thuringia-based enterprise.
The retail sector, particularly in fashion, has been significantly impacted by the shift towards online shopping. This trend, coupled with inflation, soaring energy costs, high expenses, offshoring production, and losing retail sales to online competitors, has led to a rise in bankruptcies. In Germany, the phasing out of state aid measures and the end of temporary insolvency filing suspensions has further contributed to this increase.
Könitz Porcelain, renowned for its cups, mugs, and bowls, is not the only casualty. Esprit, The Body Shop, Tupperware, Peek & Cloppenburg, and shoe retailer Reno have also sought insolvency protection recently. In 2022 alone, 102 textile manufacturers and retailers faced similar fates. This year, 2023, has seen a clear uptick in corporate bankruptcies compared to the previous year.
Könitz Porcelain's bankruptcy filing highlights the challenges faced by traditional retailers in the face of shifting consumer behaviour and economic pressures. The future of the 114-year-old company hangs in the balance due to its legal dispute, posing a significant threat to its survival.
