Reorganization of Hofheim-based Polar Group under protective umbrella

The Polar Group is to be restructured under a protective umbrella and continued with all 380 employees. This was announced today by the management of the Hofheim-based mechanical engineering company at a staff meeting after the plant vacations. Previously, the Frankfurt District Court had initiated this court-supervised procedure at the request of the family-owned company, which produces high-tech machinery for the printing and packaging industry. Delivery bottlenecks of control systems and other components for cutting machines, in which Polar Mohr is the world market leader, as well as other machines, recently led to production declines and sales slumps and threatened the company's solvency.

The Polar Group includes Adolf Mohr Maschinenfabrik GmbH & Co, founded in 1906. KG, founded in 1906, Polar-Mohr Maschinenvertriebsgesellschaft mbH & Co. KG and Dienst Verpackungstechnik GmbH, founded in 1988. Under the protective umbrella, operational management and responsibility will remain with these three companies.

"We continue to work undisturbed with all of our approximately 380 employees, fulfill all of our obligations and continue existing customer relationships. Salaries will be covered by the employment agency until the end of October," explained Frankfurt-based lawyer Dr. Robert Schiebe of the restructuring law firm Schiebe und Collegen. Schiebe was appointed general representative of the Polar Group to support the restructuring. The proceedings are being supervised by Frankfurt-based lawyer Dr. Jan Markus Plathner of Brinkmann & Partner, who has been appointed provisional administrator by the Frankfurt District Court.

The three companies of the Polar Group operate on a 50,000 square meter site at the train station in the town of Hofheim. In its core business of print finishing, Polar Mohr has been the market leader for cutting machines for decades, of which around 80 percent are exported. In recent years, the company has significantly expanded its service and maintenance, digital and packaging printing operations. The crisis in the printing industry led to declining sales and losses. In 2021, sales have increased again, but this growth is jeopardized by the current supply bottlenecks on the materials side.

"In the packaging technology sector with a focus on the food industry, in which we have been active since 2011, we have been able to grow and have become the world market leader in packaging machines for frozen pizzas. Group sales increased last year and also in the first half of 2022. Supply bottlenecks for controls and other components have now significantly reduced production volumes, as we are unable to deliver almost finished machines to customers. In addition, customers are holding back on new orders because we can no longer schedule deliveries," explained Michael Wombacher, managing director of the Polar Group.

"Following the slump in deliveries, the reduced order intake and the uncertain development, Polar Group has taken shelter at an early stage. This facilitates a quick and sustainable restructuring. The Group still has enough breathing space and is not insolvent. The Group also has sufficient substance, such as the 50,000 square meter site in the city. And in several areas of print finishing and packaging technology, the Polar Group is a leader with its highly experienced workforce. In the coming days and weeks, we will be holding talks with all the parties involved, including employees, customers, suppliers and banks. After all, everyone is likely to have an interest in the continuation of the Polar Group. I am therefore confident that we will be able to turn the company around in the next few months and safeguard jobs," says the new Chief Representative Dr. Robert Schiebe.