Gigaset files for insolvency proceedings

The German manufacturer of telecommunications hardware Gigaset has filed an application to open insolvency proceedings. The background for the insolvency application is an “unexpected and significant decline in sales” in the second half of 2023, as Gigaset reports. The company is currently insolvent.

In addition to the weak business performance in the second half of the year, the "increasing weak demand for Gigaset products as well as general purchasing and consumer reluctance in Germany and Europe" also had an impact on the company's liquidity.

Fundamental restructuring planned

Negotiations with investors for new equity or debt capital have not yet become sufficiently concrete in order to secure the necessary inflow of funds to continue the company's business outside of insolvency proceedings.

"Over the past few years, Gigaset has not been able to compensate for the decline in its core business with DECT cordless telephones by taking the right course in the new business areas," says Magnus Ekerot, CEO and Chairman of the Board of Directors of Gigaset. “This unhealthy and one-sided business orientation and the unexpected and significant decline in sales that has now occurred in the second half of 2023 have led to the current situation.”

Initially, business activities will continue unchanged. However, Gigaset is planning a “fundamental restructuring” as part of the insolvency proceedings. The economic viability of each individual business area should also be examined intensively.

“Even in this challenging situation, our employees will do their best to provide our customers with high-quality and sustainable telecommunications solutions,” Ekerot continues. Employee wages and salaries will be covered by the German Federal Employment Agency until the end of November 2023 as part of the insolvency loss benefit.

While Gigaset is still fighting to continue its business operations, the Swiss online trading group PCP is already at its end.