After over a century of producing food for Germans, Innfood is now going bankrupt
Operating since 1906, the German food producer Innfood is currently experiencing significant financial issues. The company has filed for bankruptcy and is actively seeking potential investors. Their financial struggles may impact customers of the retail giant, Edeka.
8:37 PM EST, November 19, 2023
Innfood, despite developing new plans for the year, had no choice but to file for bankruptcy due to their financial problems.
Bankruptcy follows over a century of tradition
Based in Polling-Weiding in southeastern Germany and established in 1906, Innfood is renowned for producing baby food, small children's food, and organic food for adults. The company's bankruptcy was announced in the summer of 2023 and has since been fighting for its survival.
Innfood: The private label producer for Edeka
Innfood serves as the private label producer for the retail juggernaut Edeka, thus the manufacturer's bankruptcy could potentially affect many consumers. The Edeka group also includes trade networks that, although not operating under the Edeka brand, form part of the group.
According to express.de, Spar and Netto are inclusive of these networks. To avoid empty supermarket shelves, finding potential investors is critical. The ongoing bankruptcy proceedings started in October.
Jochen Wagner from the law firm Wagner-Lehner reveals that discussions with potential investors have already commenced. The causes for Innfood's issues are multifaceted. Higher costs are partly responsible for the company's financial distress. Large investments have strained the company's budget, culminating in insolvency.
Additionally, the company made attempts to expand its operations into the culinary sector. This new venture was intended to act as the company's second strategic pillar. Although these new products were slated for release in 2023, the launch has been delayed.
In 2021, Innfood posted a turnover of 36.5 million euros (approximately $41 million) and a net profit of 1 million euros (around $1.1 million), maintaining an equity ratio of 46 percent, as pointed out by chip.de.
