German restaurant chain Vapiano opens insolvency proceedings

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXNPEC0E0NG_M.jpg
© Reuters. © Reuters.

FRANKFURT (Reuters) – German restaurant chain Vapiano SE (DE:) on Friday said it had opened insolvency proceedings and would apply for government assistance programs to avoid bankruptcy, blaming the corona crisis for a further drop in sales.

Vapiano’s 55 German restaurants were closed yesterday evening, and almost all of the chain’s 230 outlets are now closed, the restaurant chain said in a regulatory statement.

“Due to the drastic decline in net sales and revenues, Vapiano is now in a state of insolvency, specifically a cash flow insolvency,” the restaurant chain said in a regulatory statement.

Under German insolvency law, management has three weeks to evaluate whether full insolvency proceedings can still be averted.

“Vapiano will apply at short notice for support under the financial assistance programs announced by various governments in Europe,” it said.

Vapiano said it will pursue insolvency if such efforts to secure financial support fail since it generates almost no turnover, while salaries, rents and operating costs continue to accrue. It expects a decline in sales of over 20%, and a fall in operating and net profit in the first and second quarters of 2020, it said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment