Insolvency in Hermeskeil: EU Rec is fighting for the future of cyber attack!

Insolvency in Hermeskeil: EU Rec is fighting for the future of cyber attack!

The EU-Rec GmbH, a recycling company based in Hermeskeil, Rhineland-Palatinate, has filed for bankruptcy. The company, which has been working in the environmentally friendly recycling of valuable materials for over 30 years, is under pressure after a severe cyber attack has severely damaged the digital infrastructure. The management, consisting of Simone and Willi Streit, has decided to submit bankruptcy to the district court of Trier. This decision was difficult for the company, but is considered an opportunity to revise and optimize the corporate structures. EU-REC GmbH currently employs over 50 people.

The economic situation of EU-REC GmbH was already tense, impaired by rising energy prices and fluctuating order inputs. Despite the bankruptcy, business operations are fully continued. The wages of the employees are secured by bankruptcy money, and the workforce was extensively informed. The preliminary insolvency administrator Ingo Grünewald was appointed to coordinate the sustainable renovation and future -proof installation of the company.

challenges from cyber attacks

The EU-Rec GmbH is not the only company that suffers from the consequences of cyber attacks. According to the website of PwC , a current survey shows that the risk awareness in companies has almost doubled since 2018/2019. This worrying development can be observed in all company sizes.

The reasons for inadequate information security are diverse. Around 49% of those surveyed state that they have "too little time", while 43% list "too little budget" as an obstacle. Other challenges are "other priorities of the management" (36%) and "missing skills" (32%). In order to counter cyber incidents in the German economy, it is crucial to reduce these obstacles with the support of management.

The potential of the circular economy

Despite the serious situation, the managing directors of EU-REC GmbH are optimistic. They believe that their business model in the area of ​​the sustainable circular economy has great potential. The company has a solid surgical foundation, qualified employees and established customer structures. These aspects could be crucial to emerge from bankruptcy.

While the industry is fighting with the challenges of cyber attacks, EU-Rec GmbH could serve as an example for other companies that have to consider strategic rethinking and a reassessment of its security protocol. The developments of the past few months clearly show that protection against digital threats must be a central priority for companies of all orders. Merkur describes that the company owners want to take a chance to recover their place in the market of the circular economy.