Entrepreneur Casimir Kast aims to preserve local trade in Gernsbach through investment
In the historic town of Gernsbach, Germany, Casimir Kast Verpackung, a packaging company with roots dating back to 1550, has found itself in a challenging situation. Founded by Jakob Kast over five centuries ago, the company is now grappling with insolvency, marking the first time in its history that it has filed for bankruptcy protection.
Casimir Kast Verpackung and Display GmbH, along with other local companies, are feeling the heat from the fierce price war in the German packaging industry. The economic development, however, did not paint an entirely bleak picture for the company, as it reported an increase in production volume at the end of 2022.
The insolvency application has raised concerns among local officials, particularly Gernsbach's mayor, Julian Christ (SPD). Casimir Kast is a significant part of the urban community, securing around 160 jobs. The insolvency administrator, Dr. Dirk Pehl from the law firm Schultze & Braun, has been appointed to stabilize the business operations and continue business relationships with all partners, suppliers, and customers.
The goal is to find a partner or investor to lead Casimir Kast into the future. As of now, no specific investor or partner has been publicly disclosed. Dr. Pehl, along with Dr. Jürgen Erbe, is examining the company’s economic situation and exploring possible restructuring options.
Casimir Kast KG, the parent company, entered the wood chip production in 1885 and paperboard production in 1904. In the 2010s, the company invested around eight million euros in equipment and infrastructure, expanding its capacity. These investments allowed for a significant performance increase and the possibility of expanding the company's product portfolio, as explained by managing partner Christian Oetker-Kast.
Despite the insolvency, employees of Casimir Kast will continue to work as usual for up to three months, with wages and salaries secured through insolvency benefits, up to the contribution assessment ceiling. This news comes as a surprise to the Murg Valley region, despite the recent boom in online shopping and the industry being considered system-relevant during the pandemic.
The general economic situation in Germany has led Casimir Kast to file for insolvency, as explained by Christian Oetker-Kast. Further modernizations at the site were planned, including the installation of a new printing press and investments in independent energy supply, such as a photovoltaic system. These plans, however, are now on hold as the company navigates its way through the insolvency process.
