German-based kitchen brand Poggenpohl has started insolvency proceedings, citing the pandemic as the main reason behind the move.
Administrators have been appointed Poggenpohl Möbelwerke GmbH, which also operates in the UK, after the business experienced a ‘considerable decline in orders and sales since the outbreak of the Covid-19 pandemic’.
It is understood the company will continue to trade as it searches for new investors.
In a letter to retailers, the group said that it aims to ‘keep the company and the Poggenpohl brand going’ and has asked its partners to ‘stick with us during these difficult times and for us to continue on this path together’.
Prior to its administration, the business had been ‘relatively stable’ and had ‘successfully strengthened its distribution network in Asia by setting up a joint venture for sales at the end of 2019’.
It is the administrators aim to ‘preserve the company as well as the brand’.