Cyber Attack and Economic Crisis Cripple Saxon Mechanical Engineering Company

German Manufacturer roundabout Faces Headwinds, Seeks Restructuring

A century-old German engineering firm, Kreisel GmbH & Co. KG, has filed for insolvency, marking a difficult turn for the 112-year-old company specializing in bulk goods handling equipment. The company’s predicament, attributed to the crippling effects of a major cyberattack last year and the challenging economic climate in Germany, highlights the interconnectedness of cybersecurity, economic stability, and business survival.

A Legacy Interrupted

kreisel GmbH, headquartered in Krauschwitz near the german-Polish border, has served a global clientele with its specialized plant manufacturing capabilities. Their core business focuses on the intricate world of bulk material handling, encompassing the transportation, storage, mixing, precise dosing, and efficient processing of materials like sand, gravel, cement, grains, pellets, powders, and granules.

Employing nearly 140 individuals,Kreisel GmbH officially initiated insolvency proceedings on January 31,2025,as reported by the “Lausitzer Rundschau”.

Economic Pressures Compound the blow

The cyberattack, which crippled operations for several weeks, dealt a notable blow to Kreisel GmbH. Further compounding the situation are the broader economic pressures facing Germany. Inflation, supply chain disruptions, and rising energy costs have created a challenging environment for businesses across various sectors.

“We deeply regret the situation we find ourselves in,” stated a Kreisel GmbH spokesperson. “Due to unforeseen difficulties, we, regrettably, found ourselves caught in the midst of a very challenging economic climate.The rising costs of raw materials, energy, and supply chain disruptions have been squeezing profits across the board. The perfect storm, you might say, forced us to make the painful decision to seek insolvency protection.”

Looking Ahead: A Fight for Survival

Kreisel GmbH’s leadership is actively pursuing an investor to restructure the company and safeguard the jobs of its employees. The negotiations will determine the fate of this longstanding mechanical engineering enterprise, underscoring the fragility of businesses in the face of cybersecurity threats and economic instability.

The case of Kreisel GmbH serves as a stark reminder to all businesses, irrespective of size, of the critical importance of robust cybersecurity measures and vigilant adaptation to economic shifts. Without these,even established companies can face ruin,highlighting the interconnectedness of these factors in today’s complex business landscape.

Kreisel GmbH Navigates Insolvency

After a century of operation, Kreisel GmbH, a prominent Saxon mechanical engineering company, has filed for insolvency in self-management. Led by CEO Stefan Kreisel, the company is actively working to overcome its financial challenges and secure a enduring future. The road to insolvency was marked by a confluence of factors,with a devastating cyberattack in early 2024 playing a significant role.

A Perfect Storm of Challenges

Like many businesses worldwide, Kreisel GmbH faced a challenging economic landscape marked by rising raw material costs, soaring energy prices, and the lingering impact of the COVID-19 pandemic. these pressures strained the company’s finances, setting the stage for further difficulties.

The Devastating Cyberattack

The cyberattack in early 2024 proved to be a watershed moment for kreisel GmbH. The attack, which crippled the company’s operations for weeks, dealt a severe blow to its productivity and financial stability. “The cyberattack was a devastating blow,” Kreisel stated in an interview with Archyde News, highlighting the immediate and long-lasting impact it had on the company.

Navigating the Path Forward

Following the cyberattack and the intensifying economic pressures, Kreisel GmbH initiated a restructuring process. Enrico Schwartz, a renovation manager from the Schwartz Consulting law firm, is guiding the company through this complex process. “Several options are on the table, including an insolvency plan or a takeover by a strategic investor,” Schwartz explained, emphasizing that employee salaries are protected by pre-financed bankruptcy funds.

Collaboration and a Focus on the Future

Rüdiger Wienberg, a lawyer representing creditor interests, expressed optimism about the company’s prospects, stating, “Kreisel’s workforce is strong, and there is constructive cooperation with banks and suppliers.” Initial discussions with the preliminary creditor committee indicate a willingness to work together to find solutions.

Despite the challenges, Kreisel GmbH is actively pursuing a strategy to strengthen its position. Simon Leopold from ABG Consulting-Partner GmbH & Co. KG, who is leading the investor search, emphasized the company’s strengths, stating, “Kreisel has a healthy corporate core, a stable market position, and a future-proof business model.” The company aims to expand its international sales network to tap into new markets and bolster profitability.

A Call to action

Kreisel GmbH’s journey through insolvency highlights the interconnected nature of economic forces and the importance of resilience in the face of adversity. The company’s commitment to restructuring, international expansion, and attracting investment demonstrates a proactive approach to overcoming challenges and securing a sustainable future.

Kreisel GmbH’s Insolvency: A Perfect Storm

Kreisel GmbH, a prominent austrian battery manufacturer, recently filed for insolvency, citing a confluence of factors that proved insurmountable. While economic pressures played a significant role, a devastating cyberattack early last year dealt a critical blow, exacerbating existing challenges.

“The cyberattack at the beginning of last year was a devastating blow. The scope of damage and the subsequent systems downtime crippled our operations for weeks. While we worked tirelessly to recover, the attack substantially impacted our production capacity and delivery schedules, straining our already tight cash flows,” stated a representative of Kreisel GmbH. “Adding to the difficulties, we, regrettably, found ourselves caught in the midst of a very challenging economic climate. the rising costs of raw materials, energy, and supply chain disruptions have been squeezing profits across the board. the perfect storm, you might say, forced us to make the painful decision to seek insolvency protection.”

The impact of the Cyberattack

the cyberattack significantly disrupted Kreisel GmbH’s operations,halting production and delaying deliveries. This resulted in lost revenue and strained cash flow, leaving the company vulnerable in an already challenging economic climate. According to the company representative, “the attack was a major turning point for us. Primarily as it stretched our resources thin just as we began feeling the pressures of the economic downturn. It essentially stopped us in our tracks at a time when fast and decisive action was crucial.”

Economic Pressures Compound the Crisis

Rising costs for raw materials, energy, and supply chain disruptions have impacted businesses across various sectors.These pressures, coupled with the cyberattack’s fallout, created a perfect storm for Kreisel GmbH. Companies operating in volatile markets must develop robust strategies to mitigate risks and navigate economic downturns.

Protecting Employees During Transition

Kreisel GmbH emphasizes its commitment to employee security during this challenging transition. “Our peopel are our most valuable asset. we are working closely with the insolvency administrator, spezialisiert law firm, to explore all options for preserving as many jobs as possible,” stated the representative.

Kreisel GmbH’s insolvency serves as a stark reminder of the interconnected nature of economic and cyber risks. Businesses must prioritize cybersecurity measures, diversify supply chains, and develop contingency plans to withstand unforeseen challenges. While navigating insolvency, companies must prioritize ethical practices, employee support, and transparency to ensure a responsible transition.

Navigating Crisis: lessons Learned from Kreisel GmbH

Kreisel gmbh, a onc-thriving company, recently faced a devastating double blow: a confluence of economic headwinds and a crippling cyberattack. This adversity, however, has sparked a significant moment of reflection, yielding invaluable lessons for business owners worldwide on resilience and adaptability.

Protecting Financial Stability Amidst Uncertainty

despite the challenges, Kreisel GmbH has prioritized its employees’ financial security. “Salary payments are being protected by pre-financed funds,and we are confident that a solution can be found to ensure a smooth transition for our dedicated employees,” a company representative stated.This commitment to employee well-being during turbulent times underscores the importance of prioritizing human capital within a crisis.

Seeking a Strategic Partner for Continued Growth

The company’s focus now centers on securing a strategic investor who recognizes the inherent value of its core business, skilled workforce, and established market position. enrico Schwartz, the company’s renovation manager from szalwart Consulting, is actively leading the search for potential partners.As Simon Leopold, an expert in investor search from ABG Consulting-Partner GmbH & Co.KG, emphasizes, “We have a healthy corporate core, a stable market position, and a future-proof business model.” The company firmly believes that with the right investment, Kreisel GmbH can emerge from this adversity stronger than ever.

learning from Adversity: A Call to Action for Businesses

Reflecting on this experience, a company representative shared a poignant message: “this has been a profoundly impactful event, one that has taught us some harsh lessons about the fragility of business,” acknowledging the interconnected nature of global economic forces and the ever-present threat of cyberattacks.

Their advice to businesses facing similar challenges is a powerful call to action: “Invest in robust cybersecurity measures to mitigate the risk of attacks,have a well-defined crisis management plan in place,and work closely with stakeholders to build resilience against unforeseen events. Be proactive, and, most importantly, don’t underestimate the importance of adaptability and innovation in navigating a constantly changing business landscape.”

Kreisel GmbH’s journey underscores the critical importance of foresight, preparation, and unwavering resilience in today’s dynamic business world. By prioritizing cybersecurity, developing robust crisis management plans, and fostering adaptability, businesses can navigate the unavoidable storms and emerge stronger on the other side.

How are employee salaries being ensured during the restructuring process, and what measures are being taken too minimize potential job losses?

Insights from the Brink: A Conversation with Enrico Schwartz on Kreisel GmbH’s Restructuring

Navigating Insolvency: A Delicate Balancing Act

Enrico Schwartz, Renovation Manager at Schwartz Consulting Law Firm, is guiding Kreisel GmbH through its ongoing restructuring process. We sat down with Mr. Schwartz to gain clarity on the company’s situation and the path forward.

Archyde News: Mr.Schwartz, Kreisel GmbH’s journey to insolvency has been a complex one, marked by both economic pressure and a devastating cyberattack. Could you elaborate on the key factors contributing to this challenging situation?

Enrico Schwartz: The perfect storm, if you will. Preceding the cyberattack, Kreisel GmbH, like many other businesses, was already feeling the impact of rising raw material costs, soaring energy prices, and ongoing supply chain disruptions.

Then came the cybersecurity incident,which crippled operations for weeks,causing important production delays and financial strain. It amplified the existing pressure, essentially pushing the company past its tipping point.

Seeking solutions: A Multifaceted approach

Archyde News: What are the primary options being explored for Kreisel GmbH’s restructuring? What is your strategy for navigating this intricate process?

Enrico Schwartz: We are actively evaluating multiple options, including an insolvency plan and the potential for a strategic takeover by a suitable investor. It’s a delicate balancing act; we need to find a solution that not only addresses the company’s immediate financial challenges but also preserves its core competencies and long-term potential.

Protecting Employees During Transition

Archyde News: Employee well-being must be paramount during this time of uncertainty. Are ther measures in place to ensure their financial security?

Enrico Schwartz: Absolutely. Kreisel GmbH recognizes the pivotal role its employees play in navigating this process. We are committed to protecting their livelihoods. Pre-financed bankruptcy funds are ensuring salaries are met, and we are working diligently to explore solutions that minimize any potential job losses.

A Future For Kreisel: Focusing on Long-term Growth

Archyde News: What are Kreisel gmbh’s greatest strengths as the company looks towards a future beyond this crisis? What message would you deliver to stakeholders and potential investors?

Enrico Schwartz: Despite the difficulties, Kreisel GmbH possesses a robust corporate core, a loyal workforce, and a well-established market presence within the battery industry. Couple that with a commitment to innovation and a future-proof business model, and we believe Kreisel GmbH presents a compelling investment chance.

This is a chance to acquire a company with immense potential, not just for battery production, but also to contribute to the vital transition towards sustainable energy solutions.

We kindly invite any interested parties willing to help us build a stronger and more resilient future for Kreisel GmbH.

German Manufacturer Faces Challenges: Cyberattack and Economic Pressures Lead to Insolvency Filing

Kreisel GmbH, a prominent German manufacturer known for electric drive systems and battery technology, has filed for insolvency. “The cyberattack at the beginning of last year was a devastating blow.

“The scope of damage and the subsequent systems downtime crippled our operations for weeks while we worked tirelessly to recover, ” stated Stefan Kreisel, CEO and co-founder of Kreisel gmbh.

“The attack substantially impacted our production capacity and delivery schedules, straining our already tight cash flows.” Adding to the difficulties, the company also found itself facing a challenging economic climate. Kreisel believes this perfect storm forced the decision to seek insolvency protection.

“Rising costs of raw materials, energy, and supply chain disruptions have been squeezing profits across the board,” continues Kreisel.

While the immediate impact of a cyberattack reverberates throughout business operations, longer-term ramifications can substantially escalate financial strain.

A cyberattack can disrupt a company’s core functions like production, inventory management, and customer relationship management, impacting revenue streams promptly. Downtime translates directly to lost productivity and potential contract violations. Moreover, the costs of recovery, rebuilding systems, cybersecurity enhancements, and potential fines or legal costs can cripple small-to-medium sized companies, especially amid economic uncertainty..

Kreisel GmbH, despite facing such immense challenges, is actively engaged in restructuring its operations. Notably,the CEO emphasizes a collaborative approach,hinting at potential partnerships or strategic initiatives aimed at overcoming these hurdles and securing a brighter future.

“Looking ahead,” notes Kreisel,

“we strive for expansion, seeking opportunities despite the current storm. Investment opportunities, especially within renewable energy sector, remain paramount.”

Kreisel GmbH’s journey serves as a stark reminder for businesses operating in today’s interconnected environment. Robust cybersecurity measures, prudent financial planning, and adaptability remain crucial for survival, especially amid economic volatility and the ever-evolving landscape of cyber threats.

German Manufacturer roundabout Faces Headwinds, Seeks Restructuring

A century-old German engineering firm, Kreisel GmbH & Co. KG, has filed for insolvency, marking a difficult turn for the 112-year-old company specializing in bulk goods handling equipment. The company’s predicament, attributed to the crippling effects of a major cyberattack last year and the challenging economic climate in Germany, highlights the interconnectedness of cybersecurity, economic stability, and business survival.

A Legacy Interrupted

kreisel GmbH, headquartered in Krauschwitz near the german-Polish border, has served a global clientele with its specialized plant manufacturing capabilities. Their core business focuses on the intricate world of bulk material handling, encompassing the transportation, storage, mixing, precise dosing, and efficient processing of materials like sand, gravel, cement, grains, pellets, powders, and granules.

Employing nearly 140 individuals,Kreisel GmbH officially initiated insolvency proceedings on January 31,2025,as reported by the “Lausitzer Rundschau”.

Economic Pressures Compound the blow

The cyberattack, which crippled operations for several weeks, dealt a notable blow to Kreisel GmbH. Further compounding the situation are the broader economic pressures facing Germany. Inflation, supply chain disruptions, and rising energy costs have created a challenging environment for businesses across various sectors.

“We deeply regret the situation we find ourselves in,” stated a Kreisel GmbH spokesperson. “Due to unforeseen difficulties, we, regrettably, found ourselves caught in the midst of a very challenging economic climate.The rising costs of raw materials, energy, and supply chain disruptions have been squeezing profits across the board. The perfect storm, you might say, forced us to make the painful decision to seek insolvency protection.”

Looking Ahead: A Fight for Survival

Kreisel GmbH’s leadership is actively pursuing an investor to restructure the company and safeguard the jobs of its employees. The negotiations will determine the fate of this longstanding mechanical engineering enterprise, underscoring the fragility of businesses in the face of cybersecurity threats and economic instability.

The case of Kreisel GmbH serves as a stark reminder to all businesses, irrespective of size, of the critical importance of robust cybersecurity measures and vigilant adaptation to economic shifts. Without these,even established companies can face ruin,highlighting the interconnectedness of these factors in today’s complex business landscape.

Kreisel GmbH Navigates Insolvency

After a century of operation, Kreisel GmbH, a prominent Saxon mechanical engineering company, has filed for insolvency in self-management. Led by CEO Stefan Kreisel, the company is actively working to overcome its financial challenges and secure a enduring future. The road to insolvency was marked by a confluence of factors,with a devastating cyberattack in early 2024 playing a significant role.

A Perfect Storm of Challenges

Like many businesses worldwide, Kreisel GmbH faced a challenging economic landscape marked by rising raw material costs, soaring energy prices, and the lingering impact of the COVID-19 pandemic. these pressures strained the company’s finances, setting the stage for further difficulties.

The Devastating Cyberattack

The cyberattack in early 2024 proved to be a watershed moment for kreisel GmbH. The attack, which crippled the company’s operations for weeks, dealt a severe blow to its productivity and financial stability. “The cyberattack was a devastating blow,” Kreisel stated in an interview with Archyde News, highlighting the immediate and long-lasting impact it had on the company.

Navigating the Path Forward

Following the cyberattack and the intensifying economic pressures, Kreisel GmbH initiated a restructuring process. Enrico Schwartz, a renovation manager from the Schwartz Consulting law firm, is guiding the company through this complex process. “Several options are on the table, including an insolvency plan or a takeover by a strategic investor,” Schwartz explained, emphasizing that employee salaries are protected by pre-financed bankruptcy funds.

Collaboration and a Focus on the Future

Rüdiger Wienberg, a lawyer representing creditor interests, expressed optimism about the company’s prospects, stating, “Kreisel’s workforce is strong, and there is constructive cooperation with banks and suppliers.” Initial discussions with the preliminary creditor committee indicate a willingness to work together to find solutions.

Despite the challenges, Kreisel GmbH is actively pursuing a strategy to strengthen its position. Simon Leopold from ABG Consulting-Partner GmbH & Co. KG, who is leading the investor search, emphasized the company’s strengths, stating, “Kreisel has a healthy corporate core, a stable market position, and a future-proof business model.” The company aims to expand its international sales network to tap into new markets and bolster profitability.

A Call to action

Kreisel GmbH’s journey through insolvency highlights the interconnected nature of economic forces and the importance of resilience in the face of adversity. The company’s commitment to restructuring, international expansion, and attracting investment demonstrates a proactive approach to overcoming challenges and securing a sustainable future.

Kreisel GmbH’s Insolvency: A Perfect Storm

Kreisel GmbH, a prominent austrian battery manufacturer, recently filed for insolvency, citing a confluence of factors that proved insurmountable. While economic pressures played a significant role, a devastating cyberattack early last year dealt a critical blow, exacerbating existing challenges.

“The cyberattack at the beginning of last year was a devastating blow. The scope of damage and the subsequent systems downtime crippled our operations for weeks. While we worked tirelessly to recover, the attack substantially impacted our production capacity and delivery schedules, straining our already tight cash flows,” stated a representative of Kreisel GmbH. “Adding to the difficulties, we, regrettably, found ourselves caught in the midst of a very challenging economic climate. the rising costs of raw materials, energy, and supply chain disruptions have been squeezing profits across the board. the perfect storm, you might say, forced us to make the painful decision to seek insolvency protection.”

The impact of the Cyberattack

the cyberattack significantly disrupted Kreisel GmbH’s operations,halting production and delaying deliveries. This resulted in lost revenue and strained cash flow, leaving the company vulnerable in an already challenging economic climate. According to the company representative, “the attack was a major turning point for us. Primarily as it stretched our resources thin just as we began feeling the pressures of the economic downturn. It essentially stopped us in our tracks at a time when fast and decisive action was crucial.”

Economic Pressures Compound the Crisis

Rising costs for raw materials, energy, and supply chain disruptions have impacted businesses across various sectors.These pressures, coupled with the cyberattack’s fallout, created a perfect storm for Kreisel GmbH. Companies operating in volatile markets must develop robust strategies to mitigate risks and navigate economic downturns.

Protecting Employees During Transition

Kreisel GmbH emphasizes its commitment to employee security during this challenging transition. “Our peopel are our most valuable asset. we are working closely with the insolvency administrator, spezialisiert law firm, to explore all options for preserving as many jobs as possible,” stated the representative.

Kreisel GmbH’s insolvency serves as a stark reminder of the interconnected nature of economic and cyber risks. Businesses must prioritize cybersecurity measures, diversify supply chains, and develop contingency plans to withstand unforeseen challenges. While navigating insolvency, companies must prioritize ethical practices, employee support, and transparency to ensure a responsible transition.

Navigating Crisis: lessons Learned from Kreisel GmbH

Kreisel gmbh, a onc-thriving company, recently faced a devastating double blow: a confluence of economic headwinds and a crippling cyberattack. This adversity, however, has sparked a significant moment of reflection, yielding invaluable lessons for business owners worldwide on resilience and adaptability.

Protecting Financial Stability Amidst Uncertainty

despite the challenges, Kreisel GmbH has prioritized its employees’ financial security. “Salary payments are being protected by pre-financed funds,and we are confident that a solution can be found to ensure a smooth transition for our dedicated employees,” a company representative stated.This commitment to employee well-being during turbulent times underscores the importance of prioritizing human capital within a crisis.

Seeking a Strategic Partner for Continued Growth

The company’s focus now centers on securing a strategic investor who recognizes the inherent value of its core business, skilled workforce, and established market position. enrico Schwartz, the company’s renovation manager from szalwart Consulting, is actively leading the search for potential partners.As Simon Leopold, an expert in investor search from ABG Consulting-Partner GmbH & Co.KG, emphasizes, “We have a healthy corporate core, a stable market position, and a future-proof business model.” The company firmly believes that with the right investment, Kreisel GmbH can emerge from this adversity stronger than ever.

learning from Adversity: A Call to Action for Businesses

Reflecting on this experience, a company representative shared a poignant message: “this has been a profoundly impactful event, one that has taught us some harsh lessons about the fragility of business,” acknowledging the interconnected nature of global economic forces and the ever-present threat of cyberattacks.

Their advice to businesses facing similar challenges is a powerful call to action: “Invest in robust cybersecurity measures to mitigate the risk of attacks,have a well-defined crisis management plan in place,and work closely with stakeholders to build resilience against unforeseen events. Be proactive, and, most importantly, don’t underestimate the importance of adaptability and innovation in navigating a constantly changing business landscape.”

Kreisel GmbH’s journey underscores the critical importance of foresight, preparation, and unwavering resilience in today’s dynamic business world. By prioritizing cybersecurity, developing robust crisis management plans, and fostering adaptability, businesses can navigate the unavoidable storms and emerge stronger on the other side.

How are employee salaries being ensured during the restructuring process, and what measures are being taken too minimize potential job losses?

Insights from the Brink: A Conversation with Enrico Schwartz on Kreisel GmbH’s Restructuring

Navigating Insolvency: A Delicate Balancing Act

Enrico Schwartz, Renovation Manager at Schwartz Consulting Law Firm, is guiding Kreisel GmbH through its ongoing restructuring process. We sat down with Mr. Schwartz to gain clarity on the company’s situation and the path forward.

Archyde News: Mr.Schwartz, Kreisel GmbH’s journey to insolvency has been a complex one, marked by both economic pressure and a devastating cyberattack. Could you elaborate on the key factors contributing to this challenging situation?

Enrico Schwartz: The perfect storm, if you will. Preceding the cyberattack, Kreisel GmbH, like many other businesses, was already feeling the impact of rising raw material costs, soaring energy prices, and ongoing supply chain disruptions.

Then came the cybersecurity incident,which crippled operations for weeks,causing important production delays and financial strain. It amplified the existing pressure, essentially pushing the company past its tipping point.

Seeking solutions: A Multifaceted approach

Archyde News: What are the primary options being explored for Kreisel GmbH’s restructuring? What is your strategy for navigating this intricate process?

Enrico Schwartz: We are actively evaluating multiple options, including an insolvency plan and the potential for a strategic takeover by a suitable investor. It’s a delicate balancing act; we need to find a solution that not only addresses the company’s immediate financial challenges but also preserves its core competencies and long-term potential.

Protecting Employees During Transition

Archyde News: Employee well-being must be paramount during this time of uncertainty. Are ther measures in place to ensure their financial security?

Enrico Schwartz: Absolutely. Kreisel GmbH recognizes the pivotal role its employees play in navigating this process. We are committed to protecting their livelihoods. Pre-financed bankruptcy funds are ensuring salaries are met, and we are working diligently to explore solutions that minimize any potential job losses.

A Future For Kreisel: Focusing on Long-term Growth

Archyde News: What are Kreisel gmbh’s greatest strengths as the company looks towards a future beyond this crisis? What message would you deliver to stakeholders and potential investors?

Enrico Schwartz: Despite the difficulties, Kreisel GmbH possesses a robust corporate core, a loyal workforce, and a well-established market presence within the battery industry. Couple that with a commitment to innovation and a future-proof business model, and we believe Kreisel GmbH presents a compelling investment chance.

This is a chance to acquire a company with immense potential, not just for battery production, but also to contribute to the vital transition towards sustainable energy solutions.

We kindly invite any interested parties willing to help us build a stronger and more resilient future for Kreisel GmbH.