German Red Cross in Braunschweig: bankruptcy and new hope for 450 jobs!

German Red Cross in Braunschweig: bankruptcy and new hope for 450 jobs!

A difficult blow for the region: The German Red Cross (DRK) of the district association Braunschweig/Salzgitter has filed for bankruptcy. This message caused excitement and concern on Wednesday, not only among the employees, but also in the entire community. The decision of the district court to order bankruptcy in self -administration enables the DRK to work under the supervision of a property administrator and at the same time maintain business operations in all its institutions. This was announced by Nico Seefeldt Kazazi, board member of the district association, and emphasized that a renovation concept is already in the works. Class = "Source_1"> NDR reports that ...

Insolvency affects more than 450 jobs, which means great uncertainty for employees and their families. When asked what the causes of this serious situation are, there are several burdens: the economic challenges of corona pandemic, rising energy and personnel costs and an unexpected delay in the planned sale of an earlier nursing home. "The financial difficulties have already emerged in 2023," says Seefeldt Kazazi. Image reports that ...

The business continues

Despite the serious situation, the business operations of the DRK in the region remains without restrictions. A ray of hope in this difficult time: The salaries of the employees concerned are secured thanks to the bankruptcy money of the employment agency. It is expected that the DRK can renovate itself through its own administration, whereby the management is actively involved in the renovation measures. NDR adds that ...

The DRK has been an important social actor in the region since its foundation in 1948. It operates numerous facilities, including consulting and youth centers, care facilities, daycare centers and two rescue guards. Around 20 million euros in sales have been generated in recent years. The preservation of these facilities is of great importance, not only for the employees, but also for the many people who are dependent on the services of the DRK. Image stands out that ...

A look at the numbers

In the broader perspective, the German Red Cross is not solely with this challenge. The bankruptcy figures in Germany are increasing, especially in the service sector. According to Statista, there were around 110,200 insolvencies in 2023 alone, of which 17,814 were corporate bankruptcies. The service sector remains the most affected with 59 % of bankruptcies. This shows how serious the situation is for many companies. Statista informs that ...

Insolvency is never a good sign and always represent a big challenge. But as long as the DRK district association Braunschweig/Salzgitter can continue to work under supervision and with a clear plan, there is hope of sustainable renovation. For the employees, the institutions and the whole community, it remains to be seen that the way out of this crisis will soon be found.