DIY continues restructuring under debtor-in-possession proceedings

DIY Element System GmbH based in Rottenacker has filed for debtor-in-possession insolvency with the Local Court of Ulm. Restructuring expert Mr Marc-Philippe Hornung from law firm SZA Schilling, Zutt & Anschütz joined the management board once the provisional debtor-in-possession proceedings were ordered and is supporting DIY in these. The Local Court of Ulm (insolvency court) has appointed Mr Georg Jakob Stemshorn from PLUTA Rechtsanwalts GmbH as provisional insolvency monitor.

Now that the provisional debtor-in-possession proceedings have begun, the business is continuing to operate without interruption. The aim is to restructure the company and ensure its long-term competitiveness.

DIY is a European market leader in shelving and storage systems for end customers. The company develops and sells its products via brick-and-mortar stores as well as various online retailers. In particular, DIY’s customers include large hardware store chains and the specialist trade.

Challenges and measures

DIY was significantly affected by the COVID-19 crisis and its economic impact. Pandemic-related production and supply bottlenecks as well as rising energy costs further exacerbated an already strained market situation. Additional pressures resulting from the war in Ukraine, the energy crisis and high inflation led to a considerable decline in demand in 2023.

Despite these difficult conditions, there are still opportunities for the business. DIY has minimised the supply problems and can ensure a stable supply to the market. The company is participating in global tenders and engaging intensively with existing and prospective customers.