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Fasana in Stotzheim: Traditional company on the verge of extinction!
The traditional company Fasana in Euskirchen is facing bankruptcy after a cyber attack caused it to become insolvent.
Fasana in Stotzheim: Traditional company on the verge of extinction!
The traditional company Fasana from Stotzheim, which has been producing tissue and napkin products since 1919, is on the brink of collapse. As the Review online reports, production could stop as early as the end of this week, which would result in the dismissal of around 250 employees. Managing director Karsten Beisert emphasizes that the company and the workforce are doing everything in their power to save the business.
The cause of the precarious situation is a devastating cyber attack that took place in May. According to the Daily Security Review This ransomware attack brought production to a standstill for almost two weeks. The attack resulted in the company's printing systems being blocked in a very short time, making it impossible to complete customer orders and pay salaries. The financial losses during this time exceeded the two million euro mark.
Hurdles and challenges
Another problem is the high rent: Fasana pays 1.5 million euros annually to CTP, the owner of the property, without these funds flowing back into the business. At the same time, there are tensions over the price of the property, because while Fasana estimates the value of the site at 10 million euros, CTP is demanding a whopping 27.5 million euros. These discrepancies can make the M&A process even more difficult.
The deputy works council chairman Christoph Fischer is aware of the bad mood among the employees. “We are in a difficult situation,” he says. Works council head Dieter Höller emphasizes that the well-being of the workforce must be the priority in any possible operation of the company.
Futuristic perspectives?
Despite the gloomy outlook, there are also bright spots: an international investor has pledged around 50 million euros and more to make Fasana fit for the future again. This hope could be crucial, as an outside company has already been hired to demonstrate Fasana's value. A land swap has been approached to CTP, but so far without success.
The planned construction of a logistics center on the Fasana site by CTP could entail additional bureaucratic hurdles that further complicate the situation. Solutions were discussed in a top-level meeting between the city and CTP, but the results remain unclear so far. Time is of the essence as the company has a maximum of eight weeks to find a new buyer before Fasana's fate could be sealed.
In summary, Fasana's situation shows how vulnerable even long-established companies are in the digital age. The negative effects of cyber attacks and the challenges in corporate management contribute significantly to the current crisis and highlight the security situation of small and medium-sized companies in Germany.