Klingel is set to shut down by the end of January 2024.
In a shocking turn of events, the Klingel Group, a well-established multichannel distance seller, has announced that its business operations will be discontinued as of January 2024. This decision, made by the creditors' committee with the consent of the administrator at the suggestion of the self-administration, will impact more than 1,500 employees, the majority of whom are based in Pforzheim.
The works council of the Klingel Group, with the support of trade union Verdi and lawyer Markus Nagel, has been working tirelessly to achieve manageable severance regulations and support in finding new jobs for the affected employees. However, they find it incomprehensible that the previous management made repeatedly optimistic future forecasts, despite the company's troubled situation.
The works council believes that the "painful cuts" would not have been necessary if the management, advisory board, shareholders, and the Kohm family had acted openly and honestly. Verdi deeply regrets the situation and considers the responsibility for the disaster to lie with the company management.
The shutdown of the business operation came as a surprise to Verdi, who had been aware of revenue losses, high costs, and inflation putting a strain on the company. The works council was also aware of the company's precarious situation but found it clear only after the insolvency in self-administration.
Tips from Verdi members reported transition problems after the introduction of technical systems, but specific allegations against the Klingel Group's management regarding mismanagement, lack of transparency, failure to involve employee representatives in key decisions, ignoring collective agreements, or actions that jeopardize jobs and financial stability have not been publicly confirmed.
The Klingel Group has been in self-administration insolvency proceedings since May 2023, and business operations will continue until the end of January 2024. It is important to note that the business activities of SCHNEIDER GmbH & Co. KG are not affected by the discontinuation of business operations.
Verdi will continue to advise and support the works council and the employees in this difficult situation. For those affected, this is indeed a devastating blow, and many long-serving employees face the ruin of their professional lives. The works council, Verdi, and the employees are calling for transparency and accountability from the management and shareholders of the Klingel Group.
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