Traditional bakery Rackls Backstubn in Olching before renovation proceedings!

Traditional bakery Rackls Backstubn in Olching before renovation proceedings!

The traditional bakery Rackls Backstubn from Olching is in financial difficulties. Founded in 1889 by the Rackl family, the company is now run by Xaver Rackl in the fourth generation. With a branch network that includes 30 locations in the districts of Fürstenfeldbruck, Starnberg and the greater Munich area, the bakery is an important piece of regional identity.

An application to initiate restructuring proceedings under self-administration was recently submitted to the Munich District Court. The court granted this on September 19 and granted the company enforcement protection. This measure allows the management to continue to dispose of the insolvency estate, but under the supervision of an administrator. The aim is to create a sustainable position for the group of companies and to secure around 470 jobs.

Reasons for the imbalance

As the bakery explains in a statement, the reasons for the financial difficulties are complex. The consequences of the corona pandemic, sharp increases in raw material and energy prices as well as changing consumer behavior, with more and more customers shopping at discounters, are putting the company under pressure. Added to this is the high price pressure in the delivery business, where 40 percent of total sales are generated. Despite these challenges, the spokeswoman is optimistic about the chances of restructuring within the self-administration process.

After the procedure was opened, the employees were already informed and operations in the branches and in the delivery business will continue without restriction. A good hand in restructuring could help the company overcome the current difficult situation.

A look into the future

Nowadays there are also positive trends in the field of baking. A collaboration called Sofi, which arises from the collaboration between the Slowness initiative and the Danish chef Frederik Bille Brahe, aims to promote the craft tradition of baking. This concept could serve as inspiration for Rackl's Backstubn. Sofi attaches great importance to the use of high-quality raw materials and sources its grain exclusively from small, organic farmers in Northern Europe. This could also be an interesting direction for Rackls Backstubn to improve product quality and reposition itself in the market.

How the bakery ultimately develops in this extremely challenging phase remains to be seen. But with a shortage of diversity in food production, as is evident in the industrial world, striving for quality could also help strengthen customer loyalty and put the company on a more stable basis.

In these turbulent times, it remains important to maintain a positive attitude and not lose sight of your own roots. After all, the connection to tradition is also what many consumers value and what sets Rackls Backstubn apart.