The family business has found a buyer for its German naming rights.
(Photo: IMAGO/Michael Gstettenbauer)
Dusseldorf The toilet paper manufacturer Hakle, which has slipped into bankruptcy, has found a buyer for its local brands. The Italian competitor Sofidel takes over the corresponding German rights, the Düsseldorf company announced on Wednesday. Hakle produces toilet paper and wet wipes under its own name, but also kitchen towels under the “Dick & Durstig” brand.
Hakle did not comment on the sale price, but the proceeds should enable the consumer goods company to leave the insolvency proceedings under self-administration behind. According to industry insiders, Hakle and Sofidel had been negotiating the sale of the Düsseldorf site for a long time.
The Hakle creditors wanted to sell the plant in the state capital, the bidder is said to have tried to acquire only the trademark rights. Sofidel has apparently prevailed: the deal does not include the purchase of the plant. The location with around 200 employees is now to be operated under a new name but with the old management.
With sales of a good two billion euros, Sofidel itself is the second largest toilet paper manufacturer in Europe after the Swedish company Essity (“Tempo”, “Zewa”). The company from Tuscany owns brands such as “Regina” or “Softis”.
The Hakle family business was one of the first well-known consumer brands to go bankrupt in September as a result of the energy crisis. “The energy costs drove us into insolvency,” explained company boss Volker Jung in an interview with the Handelsblatt at the time.
Jung was able to gain market share with a ailing Hakle
In August 2022, Hakle paid six times as much money for gas and electricity as in the same month of 2019. The production of toilet paper is considered energy-intensive, and the medium-sized company also had to pay significantly more money for the raw material paper.
Hakle recently achieved sales of 80 million euros and a net profit of a good 650,000 euros. The company had been in financial difficulties for a long time and only generated a surplus twice between 2013 and 2021. Jung took over the company in 2019 and owns 50 percent of the shares. The investor Crosslantic holds the other 50 percent.
Jung had lined up to set up Hakle more efficiently. He also managed to gain market share. He invested in new machines and significantly reduced energy consumption. “But the energy crisis came a few months too early for us,” said Jung in an interview with the Handelsblatt.
After the bankruptcy in autumn, the brand interested around two dozen potential buyers. Jung initially aimed for a solution by the end of the year. Due to the planned continuation of the Düsseldorf production facility, the rescue got stuck for months.
Hakle owner sticks to staff in Düsseldorf
The continuation contract with Sofidel now stipulates that the plant will be busy with orders from Sofidel until the end of 2024, explained a Hakle spokesman. But even that is probably only an interim solution. “Current and future research projects in the product area as well as further technical developments should shape the future of the company in Düsseldorf,” said Hakle.
The negotiations also revolved around this production site.
(Photo: IMAGO/Michael Gstettenbauer)
Owner Jung said that perseverance in the bidding process was right and important. “We have been able to win over an owner-managed strategic investor to realign ourselves.” According to the current status, there should be “no significant changes” in the number of employees. Hakle did not comment on possible investments.
The creditors’ committee has already approved the sale, Hakle said. However, it can only be legally executed after the corresponding insolvency plan has been accepted by the creditors. This should happen in the second quarter of this year. The Federal Cartel Office still has to agree.
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