PartyWorldwide.net understands that Amscan Europe GmbH has written to partners stating that it has initiated provisional insolvency proceedings. The news follows that of Wonder Group as well as RH Smith & Sons (Smiffys) also facing difficulty following uncertain trading conditions and a clear change to the party products market viability since Covid-19.
The business states that it is profitable and will continue to trade, whilst future-proofing options are being investigated.
In a letter to partners, signed by Leo Frank Brünig – ceo, and Jürgen Müller, commercial director, the statement said:
“We are writing to inform you about significant developments within our organization. Despite our best efforts and our strong market position, a number of external factors have had a significant impact, in particular, the notice that UK based Wonder Group has made to enter into administration, at very short notice. As a result Amscan Europe has had no choice but to follow suit and initiate provisional insolvency proceedings.
As a team, we are working with the highest priority to continue to offer you the best service and quality. We see the insolvency proceedings as an opportunity to clear up legacy issues and sustain our successful business. We have already taken steps to ensure this and are being supported by advisors from Forvis Mazars.
Thanks to the planned measures and the fact that Amscan Europe is still profitable as an independent company, we are convinced that we will overcome this challenge. We shall endeavor to ensure uninterrupted and smooth operations during this time, with commitment to meet your expectations.
Stuttgart-based lawyer Steffen Beck (Pluta Rechtsanwalts GmbH) was appointed as Preliminary Insolvency Administrator, adding a wealth of experience to support us during this time.
What does this mean for you?
For you as our long-standing customer, nothing will change for the time being. Despite this difficult phase, we would like to assure you that our business operations will continue unchanged and that we will continue to be there for you. We will keep you regularly informed of all important developments so that you are always up to date.
Our future
We want to emerge stronger from this situation with a new partner and are therefore already holding talks with interested parties. We are determined to continue the tradition and values that have characterised our company for 169 years as a success story together with you. Your satisfaction and trust are particularly important to us.
We thank you for your understanding and support during this phase. If you have any questions or concerns, please do not hesitate to contact us at any time.”
