Kelheim Fibres filed for bankruptcy at Germany's Regensburg District Court on 22 October, according to local news publication Mittelbayerische.
Local news reports claim it has struggled to compete with the prices offered by its competitors in Asia and it has also suffered from high energy and raw material costs
This is said to have made it difficult for the company to operate in a financially viable way, according to local news publication BR24, however it adds that Kelheim Fibres hopes to implement its own restructuring plan.
Kelheim Fibres was unable to share an official statement with Just Style at the time of going to press.
On its official website Kelheim Fibres says it produces fibres that leading corporations use to manufacture products in the areas of feminine hygiene and body care, filtration, insulation and textiles. Its applications include apparel, technical fibres, nonwovens and hygiene, specialty papers and tailor made solutions.
In July Kelheim Fibres announced it had established a solid financing plan for future profitability with the completion of a restructuring agreement.
At that time CEO Craig Barker expressed optimism. He said: “The past few years have been very challenging for us and many other companies. Our financiers have shown exceptional commitment and rightly expect us to advance the operational restructuring measures that have been initiated.”
The restructuring measures included streamlining the product portfolio towards more specialties — a shift that was initiated several years ago.
Kelheim Fibres also shared at that time that it has maintained the trust of its suppliers and customers through transparent communication. The sale of a non-essential property made a significant financial contribution to its restructuring plan and cooperation with local authorities had been crucial in the process.
