Cyberattacks Drive German Companies to Insolvency, Threatening Hundreds of Jobs

Two notable German companies have recently faced insolvency, with one filing directly due to the severe impact of a cyberattack. Fasana, a paper napkin manufacturer based in Euskirchen, declared insolvency following a disruptive cyber incident on May 21. Intruders rendered all company computers unusable, halting invoicing and order processing. Employees found ransom notes in printers upon arriving to work, and production was significantly disrupted, leading to damages estimated in the millions. Despite the setback, Fasana has managed to resume partial operations and began deliveries again recently, with employees voluntarily working overtime to stabilize output. Insolvency administrator Dr. Dirk Wegener is actively seeking a buyer to save the long-standing business, which has served the community for over 100 years. Euskirchen's Mayor Sacha Reichelt visited the company to offer moral support, though financial aid from the city is not possible.

Separately, Mocopinus GmbH & Co. KG, a wood processing company with 270 employees at three locations in Ulm, Karlsruhe, and Ammelsheim, filed for insolvency under self-administration. Unlike Fasana, Mocopinus’s financial difficulties stem from external economic challenges, including a decline in construction activity and limited access to key materials due to the Ukraine war. The company's headquarters in Ulm continues operations with support from the Ulm District Court and appointed insolvency administrator Georg Jakob Stemshorn. Management plans to maintain business activity and salaries for at least three months while exploring refinancing and investor options. CEO Ulrich Braig expressed commitment to stabilizing the enterprise and securing its future.

These insolvencies reflect a growing vulnerability among German businesses facing operational and economic pressures, including cyber threats. Fasana's cyberattack highlights the severe consequences cybersecurity breaches can have, leading directly to insolvency, while Mocopinus exemplifies challenges tied to geopolitical and market factors. The efforts of company leaderships to continue operations and protect jobs demonstrate resilience amid adversity. Support from local officials, though limited to moral encouragement, further emphasizes the importance of these firms to their communities.