DIY chain Hellweg files for bankruptcy

One of Germany’s largest DIY and hardware chains, Hellweg, has filed for bankruptcy. The company hopes insolvency proceedings will stabilise finances.

Hellweg goes into administration

The Dortmund-based DIY chain store Hellweg has announced it has filed for bankruptcy. Hellweg’s 68 shops across Germany and its online store will continue operating until further notice.

The company’s around 2.900 employees were informed of the insolvency plan on June 16 and are now set to receive insolvency payments from the Federal Employment Agency over the next three months.

Hellweg facing financial woes for years

According to a Hellweg press release cited by Tagesschau, the company has experienced little financial growth in recent years. More specifically, inflation, rising rents and fewer customers were cited as the main factors contributing to financial troubles.

The company, which was founded in Dortmund in 1971, is conducting its own administration procedures with support from two commercial lawyers, while an administrator from Essen Local Court (Amtsgericht) oversees the proceedings.

If all goes well, the company hopes to emerge from insolvency proceedings with a plan to stabilise finances and continue operations in some capacity.