Schmidt-Jortzig in the insolvency of Hussel, Eilles, and Arko

The confectionery, coffee, and tea firms Arko, Hussel, and Eilles of the Deutsche Confiserie Holding have filed for insolvency. In 2021, the three companies underwent a self-administered procedure due to the pandemic and initially managed to stabilize.

Arko, operating as a coffee retailer, Hussel, specializing in confectionery, and Eilles, functioning as a tea retailer, collectively run 224 stores in Germany. Founded in 1948 on an abandoned military site in Wahlstedt, coffee retailer Arko acquired the confectionery chain Hussel, also established in the post-war period, in 2018. Tea retailer Eilles had been part of Arko since 2016. In 2019, the companies ultimately came under the umbrella of Deutsche Confiserie Holding (DCH), based in Hanover.

The three companies, headquartered in Wahlstedt, Schleswig-Holstein, employ 1,200 staff members. Their wages and salaries are secured through insolvency benefits until the end of March.

Attorney Dr. Dietmar Penzlin (pictured) from the Hamburg-based law firm Schmidt-Jortzig Petersen Penzlin has been appointed as the provisional administrator for all three companies by the Norderstedt District Court. He already has some familiarity with the companies.

The commencement of the proceedings is scheduled for April 1st.

Insolvency Administration for Arko, Hussel, Eilles:

• Schmidt-Jortzig Petersen Penzlin (Hamburg): Dr. Dietmar Penzlin (provisional insolvency administrator), Niklas Marwedel, Dr. Christian Mikolajczak (all Insolvency Law/Restructuring), Dr. Bjarne Petersen, Dr. Philippe Rollin (Corporate/M&A), Stefanie Enzenhofer; Associate: Isabelle Tenkhoff (all Insolvency Law/Restructuring)

Advisor to DCH/Insolvency Administrator:

• Eckert (Hanover): Markus Kohlstedt (Lead), Ole Häger (all Insolvency Law/Restructuring), Torss Nagel (Labor Law)

Supplier Pool:

• Warning Müller-Seils Wolf (Cologne): Dr. Carsten Müller-Seils (Insolvency Law/Restructuring)

Background: The key participants were already involved with the companies in 2021. Penzlin, primarily advising and appointed in the northern German region, acted as a trustee for Hussel and Eilles, while Arko fell under the responsibility of Hamburg-based Reimer partner Dr. Tjark Thies. This time, the Norderstedt court placed all three companies under a single administration. In the search for investors, the administrator relies on the Berlin-based consulting firm Saxenhammer, specializing in transactions in special situations.