Mindfactory confirms insolvency in self-administration

The rumor mill was right: Mindfactory GmbH had already initiated insolvency proceedings in self-administration at the end of February – a so-called self-administration procedure to restructure its own finances. After weeks of silence, the hardware retailer confirmed this in a press release sent out by e-mail.

It typically takes several months before insolvency proceedings are actually opened. However, Mindfactory is already confident about the continued operation of the store. The suppliers are supplying Mindfactory again, according to their own statements, in full and without prepayment transactions. This means that the store can now pay its suppliers as usual after the goods have been sold.

In fact, the range has been filling up since last week. In addition to the latest graphics cards, Mindfactory now also has more processors available again, including the popular Ryzen 7 9800X3D (starting from 432 €). However, Mindfactory is rarely one of the cheapest providers, at least at the moment.

Support cases are to be processed

heise online recently received emails about problems with support, including refunds. Mindfactory wants to deal with such cases promptly:

"In addition to sales, the service business has now also returned to normality," the statement reads. "Returns and other service cases are being processed as normal again. The cases that have not yet been processed since the start of the self-administration proceedings will now also be gradually processed and completed."

Organizational matters

Peter Brauer is managing Mindfactory's reorganization in his role as Restructuring Director. Nicole Jedrol and Dr. Sebastian Braun from the law firm Reinhart Kober Großkinsky Braun have been appointed as general representatives. Both lawyers specialize in insolvency and restructuring law.

Mindfactory has various options for opening self-administration proceedings. In addition to an internal restructuring plan, external investors would also be possible. At the moment, there does not yet appear to be a financial backer.

According to rumors, tax inconsistencies led to a short-term payment of millions in arrears and put Mindfactory in financial difficulties. Apart from this, the business was running according to the available annual reports (available in the Federal Gazette until March 2022). At that time, Mindfactory generated an annual turnover of almost 303 million euros and a profit of almost eight million euros.

(mma)