Future bagged. bachert&partner sends envelope manufacturer on the road to success

The starting position 

A renowned envelope manufacturer produces 20 billion paper envelopes of all shapes and functions annually  across 18 countries, operating through a complex holding structure comprising over  40 companies. The owner-managed holding structure, with a history dating back to 1807, finds itself in a critical situation in early 2017. The company, with an annual sales volume of over 200 million euros, has invested heavily in acquisitions and resulted in stagnation: internationally targeted growth is failing to materialize, integration of the acquisitions is slow and the markets are becoming more digital - the paper envelope is simply losing importance. Consequently, a persistent loss situation despite internal countermeasures and increasingly tight liquidity threatened the company’s viability, exacerbated by its intricate corporate structure and numerous financing partners, raising the specter of insolvency. Action must be taken quickly.

The procedure 

In addition to a restructuring concept according to IDW S 6, bachert&partner develops a sustainable overall strategy for the further development of the business model within an attractive growth market. The company is to become the innovation leader for "light packaging" across Europe. The measures introduced are stretching management and staff to the limit. However, only through consistent, pragmatic implementation of the restructuring concept and tranparent communication with all stakeholders could the group`s collapse be averted and a successful turnaround realized.

The measures at a glance 

  • Negotiations with tax office and antitrust authorities regarding legacy issues

  • Standstill negotiations with financing partners and stakeholders

  • Setting up working capital management

  • Conclusion of a social plan with reconciliation of interests

  • Sale or closure of companies

  • Relocation of machinery and personnel capacities

  • Introduction of "Lean Production“

  • Value-analytical optimization of envelopes

  • Development of a sales-up program

  • Implementation of SAP HybrisT 

The successes 

After 15 months, the earnings situation has turned positive. In total, a two-digit million amount of funds was secured for the expansion of the overall strategy - around 40% of this from internal financing measures. The consistent approach and farsightedness of the restructuring team lead to a sustainable turnaround. The investment in the bachert&partner team yielded a full returns within 12 months. More than 1,200 jobs are secured and the company is heading for a promising future.