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

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

A serious blow for the region: The German Red Cross (DRK) of the Braunschweig/Salzgitter district association has filed for bankruptcy. This announcement caused excitement and concern on Wednesday, not only among employees but also throughout the community. The district court's decision to order self-administration bankruptcy allows the DRK to operate under the supervision of a administrator while maintaining business operations at all of its facilities. Nico Seefeldt Kazazi, board member of the district association, announced this and emphasized that a renovation concept is already in the works. NDR reports that...

The bankruptcy affects more than 450 jobs, causing great uncertainty for employees and their families. When asked what the causes of this serious situation are, several pressures emerge: the economic challenges caused by the corona pandemic, rising energy and personnel costs and an unexpected delay in the planned sale of a former nursing home. “The financial difficulties have already become apparent in 2023,” said Seefeldt Kazazi. Bild reports that...

Business operations continue

Despite the serious situation, the DRK's business operations in the region remain unrestricted for the time being. A ray of hope in this difficult time: the salaries of the affected employees are secured thanks to the insolvency benefit from the employment agency. It is expected that the DRK will be able to restructure itself through self-administration, with the management remaining actively involved in the restructuring measures. NDR adds that...

The DRK has been an important social actor in the region since its founding in 1948. It operates numerous facilities, including advice and youth centers, care facilities, daycare centers and two rescue stations. Around 20 million euros in sales have been generated in recent years. Maintaining these facilities is of great importance, not only for the employees, but also for the many people who rely on the DRK's services. Image highlights that...

A look at the numbers

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

Insolvencies are never a good sign and always represent a major 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 for sustainable restructuring. It remains to be hoped that the employees, the facilities and the entire community will find a way out of this crisis soon.