Alno AG has issued a statement saying that it has hired a mergers and acquisitions – M&A – consultant to oversee a “structured bidding process” for the “entire Alno group” as part of a dual-track process, following Alno AG's application for administration in July.
According to Alno UK, making preparations for a "structured bidding procedure" is an obligation under German law and would "only be pursued at the end of the three-month insolvency process period, should the restructuring plan not be successful".
"At the very positive news of production recommencing at all factories and deliveries being scheduled for imminent arrival, Alno UK is confident that the sale of the group will not become necessary," it added.
Alno AG also confirmed that production at its Enger factory – which mainly produces kitchens for its Wellmann brand – will resume on the 7th August.
The company also said that orders which were “pre-planned” on the 12th July – when it went into administration – and any new orders received since then are being produced in its Pfullendorf factory on Saturdays to allow the company to catch up.
Any newly commissioned kitchens, Alno AG said, will be put into production from the 28th August and will be delivered from September.
The company also noted that it received a loan on the 27th July to begin planning the reinstatement of production for Pino Küchen – which also went into administration at the end of July – at its Coswig factory, which it hopes to resume next week. Alno AG added that the “interruption of production” was necessary to ensure that the business was suitably financed to ensure all commitments could be fulfilled, it said.
Alno UK previously issued a statement following Alno AG's application for administration, stating that the parent company's subsidiaries – including Alno UK and Pino – are “outside the scope” of Alno AG's insolvency proceedings. Alno UK also noted that the affected German factories represent 22.5% of Alno UK purchases.
"Alno UK would like to thank its business partners and customers for their continued loyalty and support during this restructuring process, and is pleased to be able to communicate positive news to its UK retail network regarding the fulfilment of outstanding orders and the planned production of new kitchens," Alno UK said.
Quite how the whole affair will pan out is of obvious concern to UK Alno retailers and customers alike but with reports in German media suggesting a power struggle has gripped Alno, involving Ipek Demirtas Chief Financial Officer and a large shareholder and the continued sell off and exit of Whirlpool's stake in Alno, the recent news of the group being sold will do little to calm fears to retailers and customers whom have placed orders yet to be fulfilled, despite Alno's statements that all is well. Only time will tell.
