DRK Hagen in the crisis: Insolvency proceedings started - what now?

DRK Hagen in the crisis: Insolvency proceedings started - what now?

The DRK-Kreisverband Hagen officially applied for bankruptcy on February 3, 2025. This step came after a difficult financial year, which started in November 2024 with the submission of the application to the Hagen district court. The court approved the provisional self -administration to stabilize the ongoing management and to secure the future of the association in the long term.

Board and the works council informed the workforce about the current situation and explained the next steps. Philipp Kohn, the CEO, emphasized that the decision for self -administration was necessary to maintain the operation of the facilities and enable stabilization. All ongoing business can be continued, which is why employees continue to receive salaries and wages directly from the district association.

background of bankruptcy

The financial difficulties of the DRK district association Hagen are diverse. According to Wa , they result from a negative economic development over the past two years, in connection with significant climbers due to wage increases. Inflation as well as the increased prices for energy, food and services, in particular through the Ukraine War, also contributed to the tense situation. In addition, there are massive cuts in the social sector by the state government of North Rhine-Westphalia.

In order to achieve sustainable renovation, the DRK is supported by a specialized law firm for insolvency and renovation law. A specific measures plan will be developed in the coming time. However, it should be noted that all facilities and services will continue to be provided, but a financial review must be subjected to. During this phase, the employees receive bankruptcy money from the Federal Employment Agency - an important support for the workforce in this critical period.

The process of self -administration

Self -administration is an insolvency procedure that is used primarily if there is an impending insolvency or over -indebtedness. The legal framework for this is clearly defined in bankruptcy law. According to Rosenberg & Kollegen , the initially initially initiated insolvency opening procedure usually takes two to three months. During this period, the preliminary self -administration can be arranged that enables the applicant company to run its business himself.

Although the procedure is often associated with a protective shield procedure, it is also possible in self -administration to operate in the event of insolvency that has already occurred. A great advantage of this procedure is to maintain management, while at the same time the goal is pursued to effectively cope with the bankruptcy without immediate effects on the workforce and services. The decision of the DRK district association Hagen is therefore not only a reaction to acute financial challenges, but also a strategic step to restore long-term financial stability.