Trade Credit Insurance Pullout Sends Two German DIY Chains into Court-Supervised Restructuring
17.06.2026 - 00:42:05 | boerse-global.de
The cancellation of a key trade credit insurance policy by the German purchasing cooperative Markant has forced the Dortmund-based hardware chain Hellweg and the BayWa Bau- & Gartenmärkte to file for insolvency under self-administration. The Essen district court approved both petitions on Tuesday, allowing the companies to keep operating while they restructure under judicial oversight.
Self-Administration with External Oversight
Existing management remains in place, but two external restructuring specialists—Gerrit Hölzle and Karl-Friedrich Curtze from the law firm Görg—have been appointed to the management boards. Attorney Stefan Denkhaus has been named preliminary custodian by the court, charged with monitoring the financial situation and safeguarding creditor interests. A concrete restructuring plan is expected by autumn.
Without the credit insurance, the chains lost their ability to secure supplier financing, hampering inventory purchases and squeezing liquidity at a time when margins were already thin.
4,000 Employees Affected, Wages Secured for Three Months
Hellweg operates 68 stores and employs roughly 2,900 people, primarily concentrated in the Rhine-Ruhr region, Berlin, and Brandenburg, where it runs 11 outlets. Six locations in Austria are also covered by the proceedings. BayWa’s garden and hardware division has 46 stores and 1,300 staff members.
Wages and salaries for all employees will continue to be paid for three months through the Federal Employment Agency’s insolvency benefit scheme. No closures or changes to store operations or the online shop have been announced.
Rising Costs and Consumer Caution Crush Margins
Both companies point to sustained increases in purchasing prices, persistently weak consumer demand, and rising rents as the drivers of the crisis. In Germany’s fiercely competitive DIY retail sector, those cumulative cost pressures proved impossible to absorb without a formal court-supervised procedure.
Hellweg ranked ninth among Germany’s largest home-improvement retailers, reporting revenue of €787 million in 2024. Despite that position, the combination of inflation, a cautious spending climate, and the loss of credit insurance left the company with no alternative to filing.
