Buyer unexpectedly withdraws from the purchase contract
The buyer of Mister Minit's restructured German business, which is part of the Minit Group, surprisingly did not complete the purchase agreement and refused to take over the business operations. The self-administration and the administrator are examining legal action against the buyer.
In close coordination with the buyer, the self-management team developed a restructuring concept and implemented it during the insolvency operation, including the closure of unprofitable shops, the implementation of a personnel concept and the renegotiation of the rental conditions. The purchase agreement dated November 4, 2020 provided for the takeover of the restructured business of Minit Service GmbH with 116 shops and around 250 employees by March 1, 2021 at the latest.
Since the ongoing lockdown is having a full impact on Minit Service GmbH's current liquidity situation with high daily losses and the interest of alternative investors is at zero, the self-management is forced to immediately cease business operations, the company announced. As a company in bankruptcy, Minit Service GmbH will not be able to bridge the lockdown with state aid funds. Processing options are now being explored.
“Despite the restructuring measures implemented, the lockdown now makes it unavoidable to stop business operations,” explains restructuring expert Christoph Enkler from the law firm Brinkmann & Partner, who was appointed to management as part of the self-administration. “This with the court-appointed administrator Dr. The step, which was closely coordinated by Gregor Bräuer from the law firm hww and the creditors' committee, is very regrettable, especially in view of the jobs that will be lost." Managing director Michael Heina adds: "We were on a very good path with the restructuring plan. We pulled out all the stops and fought on all fronts to be able to maintain the company in a restructured form. Unfortunately, the company’s liquidity situation is now forcing us to cease operations.”
Till Buschmann from the law firm Bryan Cave Leighton Paisner LLP, who closely accompanied the process as general representative, reports: “We tried everything to achieve a long-term perspective for the workforce and the company. The combination of the ongoing lockdown and inaccessible state aid funds - even for self-administration - ultimately broke our efforts. The market will continue to consolidate.”
“This is a bitter moment for the workforce, the creditors and everyone involved who have worked with all their might to preserve Mister Minit. All my thanks go to them. The facts created by the investor's surprising withdrawal cannot be reversed. It will now be a matter of examining all legally available options and using them with full consistency,” said the administrator Dr. Gregor Brauer.
