German moving and logistics company Henk International has begun self-administration proceedings in order to restructure its operations.
The move, approved by a court in Düsseldorf on 16 October, is the result of a decline in demand for office and commercial relocations, said the third-generation family business. The existing management team will continue to run the business as it restructures the company’s finances, carrying out operations as normal and fulfilling all scheduled moves and existing customer orders.
Henk International’s 70 employees have been informed and their salaries are guaranteed until December through the German Federal Employment Agency.
The company said its financial issues had been caused by changing working practices, including increased home working and flexible office arrangements, which have reduced demand for business relocations. This has been compounded by a weak property market, postponed construction projects, increases in energy and fuel costs, and high price competition, which have all hit profitability.
Managing directors Ludwig and Maurice Henk said the restructuring would restore financial stability and secure the company’s future.
‘Henk International has stood for quality, reliability and a strong customer focus for many years. We owe these strengths particularly to the commitment and experience of our employees,’ they added in a joint statement. ‘We are convinced that self-administration gives us the opportunity to make our company fit for the future once again. We want to pursue this path together with our team.
‘We now need the unity and support of everyone involved to put Henk International back on the path to success.’