Drinking against bankruptcy

Just because Michael Hollmann, 55, used to be CEO of one of Germany’s largest brewing groups Brau + Brunnen, which he sold to Radeberger Brewery in 2004, it does not mean that he has the wherewithal to run his own brewery. In mid-November 2013 his Iserlohn Brewery filed for bankruptcy, owing suppliers and banks an estimated EUR 2 million.

Already in 2003, when Iserlohn was part of Brau + Brunnen and facing insolvency, he wanted to close the brewery down. In the end, he merely sold it off. Guess everybody’s surprise when in 2010 he bought it himself for an undisclosed sum, having previously taken over the Bolten alt beer brewery in 2005. Since then the Iserlohn brewery has struggled on, producing an estimated 500,000 hl of beer, 400,000 hl of which are private label beers for supermarket chains.

Now, Iserlohn is facing another existential crisis. 95 jobs are at risk. As Mr Hollmann and his Managing Director Lars Junker have filed for bankruptcy in self-administration, they will continue to run the Iserlohn Brewery during its reorganisation. Many suspect that the insolvency will help Iserlohn to elegantly cancel a lot of debt.

Many consumers in the region will have to start “drinking against bankruptcy” again to save the brewery which was founded in 1899 by 27 Iserlohn citizens.