The German economy is facing increasing pressure from high energy prices since Berlin began to gradually phase out imports of Russian oil and gas following the escalation of the conflict in Ukraine in 2022, reports Capital.ba.
The pressure has been further intensified by the recent rise in crude oil prices caused by the U.S.-Israeli war against Iran.
As part of the bankruptcy proceedings, the brewery will continue to operate under the current management, while the bankruptcy trustee appointed by the court will oversee the restructuring process. Employees will retain their jobs, while Hofbräuhaus Volters aims to expand its business and pivot to the production of non-alcoholic beverages.
With the decline in beer consumption across the country, which reached a record low last year, the company cited the accelerated rise in operational costs as a key reason for initiating bankruptcy proceedings.
According to the Braunschweiger Zeitung, the skyrocketing energy prices have particularly hit German breweries hard.
Germany recorded a recession in 2023 and 2024, followed by nearly complete stagnation of the economy last year, with a forecasted economic growth of only 0.5 percent this year.
Many German companies, including automotive giants Mercedes-Benz and BMW, have faced challenges in adjusting to higher energy costs and weaker demand.
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