Leading German circular knitting machinery manufacturer Mayer & Cie has filed for insolvency under self-administration, citing a nearly 50% sales collapse driven by US-China trade tensions, the Ukraine war, and Chinese state-subsidised competition. The Hechingen District Court application has allowed the Albstadt firm to retain management control during restructuring while ensuring operational continuity and worker protection.
- The company on Tuesday last filed for insolvency under self-administration, a legal framework that keeps management in control of restructuring rather than transferring authority to external administrators.
- Mayer & Cie operates from its Albstadt city headquarters with approximately 280 staff members whose salaries are guaranteed for three months through Germany's statutory insolvency benefit scheme.
- The firm manufactures circular knitting and braiding machines that are almost entirely exported and remain highly valued by textile producers across international markets.
- Founded in 1905, the owner-managed business has operated for 120 years under four family generations before entering this financial restructuring phase.
WHAT'S AT STAKE: The proceedings will decide the future of the 120-year-old manufacturer and its specialised machinery, which is used by textile producers worldwide. Its Albstadt workforce relies on a successful outcome for their long-term employment, as the statutory insolvency benefit only secures salaries for an initial three-month period during the complex reorganisation process.
- The workforce faces employment uncertainty once the statutory insolvency benefit period expires if restructuring efforts fail to stabilise revenue and restore profitability.
- Global textile manufacturers who depend on Mayer & Cie's specialised circular knitting and braiding machines risk supply chain disruption if the company cannot maintain production capacity.
- Germany's textile machinery sector stands to lose a 120-year-old manufacturer with established engineering expertise and international customer relationships built across four family generations.
- The firm's reputation for precision engineering and technological innovation could erode if restructuring delays product development or compromises quality standards during financial reorganisation.
THE TRIGGER: A confluence of global economic pressures converged to destabilise Mayer & Cie's export-dependent business model over the past year. The US-China trade conflict triggered widespread investment hesitation across international textile markets, reducing capital spending on new machinery. Simultaneously, the ongoing Ukraine war further dampened global manufacturing confidence, while Turkey—identified as a key export market—experienced high inflation that undermined local textile producers' competitiveness and purchasing power.
- US-China trade tensions created global investment reluctance that reduced demand for new textile machinery across international markets where Mayer & Cie traditionally generated export revenue.
- The Ukraine war contributed to broader manufacturing uncertainty, causing textile producers worldwide to delay capital expenditure on equipment purchases and factory modernisation projects.
- High inflation in Turkey, described as an important export market, eroded the competitiveness of local textile manufacturers and diminished their capacity to invest in machinery.
- State-subsidised Chinese manufacturers entered global markets with low-priced textile machinery, intensifying competitive pressure while Mayer & Cie. faced rising operational costs domestically.
THE LEGAL FRAMEWORK: The self-administration process provides a legal framework for the existing management to retain control of the company's restructuring under court supervision. Martin Mucha from Grub Brugger has joined as general representative to support this effort, while Ilkin Bananyarli from PLUTA will serve as provisional administrator. This structure is designed to allow business operations to continue while creditor interests are protected.
- Self-administration allows the fourth-generation family management to control restructuring strategy, suggesting they view the crisis as cyclical market disruption rather than structural business failure.
- The emphasis on maintaining core competencies and continuing normal operations implies the company believes its technical expertise and customer base remain commercially viable post-restructuring.
- Nearly fifty per cent revenue collapse combined with rising costs points to margin compression that exposed the firm's vulnerability to any sustained demand shock or price competition.
WHAT THEY SAID:
On Thursday, together with the management, I informed the workforce about the insolvency application. At the same time, the necessary steps were taken to maintain business operations. We intend to continue business operations as usual and will concentrate with all our commitment on maintaining the company's core competencies.
— Martin Mucha
General Representative
Grub Brugger
