German coffee giant goes bankrupt!

Long-established and beloved German coffee, tea, and confectionery brands Arko, Hussel, and Eilles are on the brink of bankruptcy. It was announced that the three brands, operating under Deutsche Confiserie Holding, have filed for bankruptcy with the Norderstedt Regional Court.

The fact that these brands, well-known not only in Germany but also among Turkish consumers, were dragged into the economic crisis created great surprise in the industry.

THE IMPACT OF THE PANDEMIC

According to a report by leading German publication ARTI49, this bankruptcy filing represents the second financial collapse for the companies in the past few years. The brands, heavily impacted by the economic downturn caused by the pandemic in 2021, have been struggling to recover since then. However, rising costs, changing consumer habits, and the contraction in the retail sector have brought these three brands back to the brink of bankruptcy.

300 BRANCHES, 1,200 EMPLOYEES

Arko, Hussel, and Eilles have approximately 300 stores across Germany. The future of these chains, which employ a total of 1,200 people, remains uncertain. As part of the bankruptcy process, the court appointed bankruptcy administrators, and it was stated that employees' salaries will be covered by state-backed bankruptcy aid for at least three months.

These brands, known for their high quality and traditional product range in the coffee, tea, and confectionery sectors, had become a ubiquitous part of German consumer culture. Experts warn that this bankruptcy could profoundly impact not only the three brands but also the retail food and gift market.

Industry representatives warn that the crisis could spread to other small and medium-sized companies operating with a similar concept.