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Saxon Auto Supplier DMB Metallverarbeitung Enters Insolvency After Order Slump

A court-appointed administrator is steering restructuring with wages temporarily secured by insolvency pay.

Overview

  • DMB Metallverarbeitung filed for insolvency in early September, and the Amtsgericht Chemnitz approved the application.
  • Lawyer Christian Krönert of Schultze & Braun was named provisional insolvency administrator, working on a restructuring plan with turnaround expert Dirk Herzig.
  • The company cites a drastic drop in revenue and orders as the cause of its payment difficulties, reflecting a tough transition in the auto industry.
  • Operations continue and roughly 70 employees have their pay covered through insolvency money for August to October, with initial supplier feedback reported as positive.
  • The Erzgebirge-based firm, founded in 1962, had already trimmed personnel last year to cut costs but still faced declining demand.