Alno AG has found a potential buyer for the business.
Insolvency administrator Prof Dr Martin Hörmann has signed a purchase agreement with investor RiverRock in what he described as “a surprising turnaround”.
The purchase agreement is still subject to a number of conditions, which include the approval of the creditors committee, the establishment of a transfer company and the approval of short-time work by the employment agency.
Production will remain closed until the agreement is finalised, at which point around 410 employees and 34 apprentices will be employed by the new Alno, as well as the takeover of Alno AG machinery, land and trademark rights.
Financial conduct authority Watling Street Advisors, on behalf of RiverRock, intends to resume kitchen furniture production as soon as possible, a statement confirmed.
The business ceased trading on November 24 after Prof Hörmann failed to find a buyer.
Prof Hörmann said: “We are very pleased that the employees can now regain hope. Both sides have intensively and constructively worked towards a conclusion. With the contract we have reached a very important stage, but we are not yet at our destination. Now we must wait and see that the conditions are met for the treaty to become effective.”
Kbbreview contacted RiverRock for comment but it is not yet known what this means for the UK market.