Following the conclusion of its preliminary insolvency proceedings Auctionata Paddle8 AG will cease its German operations under the Auctionata brand as sufficient funds for maintaining the going concern could not be found.

As a result, preliminary insolvency administrator Christian von Brockdorff has agreed with the preliminary creditor committee to begin the wind down of the business and the liquidation of its assets in the context of formal insolvency proceedings beginning March 1.

Brockdorff, name partner of BBL Bernsau Brockdorff Insolvenz- und Zwangsverwalter GbR, one of the leading turnaround and insolvency specialists in Germany, regrets this development but sees no viable alternative.

Thanks to the enormous efforts of recently brought in CEO Thomas Hesse and his team to restructure the business, subsidiaries Paddle8 in the US and Value-my-Stuff in the UK were sold and will continue to operate. Reductions in personnel also led to massive cost savings in Germany. Says Brockdorff: “All necessary steps were taken. In the end, however, investors did not come together to make sufficient funds available to operate the insolvent German company as a going concern.”

The German company’s approximately 170 employees have been informed about developments. 30-40 will remain inside the company to support the wind-down process. Hesse, who took over his position from former founder Alexander Zacke in the Fall of 2016, will end his role as restructuring CEO.

Says Brockdorff: “Thomas Hesse and his team around CFO Lucas Hülsmann have begun the insolvency proceeding at the right time and rapidly achieved significant restructuring successes, especially with Paddle8 in New York and Value-my-Stuff in London continuing to operate. Despite convincing work of the new management team and a new strategic setup for the German company, the time frame was not sufficient to secure the necessary funds for a continuation of the business in Berlin. I would like to also thank all employees who have diligently supported the company during this difficult time.”

The team around Brockdorff is currently also evaluating additional opportunities for selling partial business assets of the company.