Penn Solutions filed for insolvency on August 26, 2026. On the same day, the Paderborn Local Court ordered preliminary insolvency proceedings and appointed attorney Stefan Meyer of PLUTA Rechtsanwalts GmbH as preliminary insolvency administrator.

Operations at the Paderborn-based company are currently continuing. Meyer and his team are analysing the company's economic and financial situation while examining options for a sustainable continuation of the business.

“The economic starting position is challenging. Over the past few weeks, we have been able to stabilise business operations. Our task now is to work together with all parties involved to explore the conditions for a viable continuation solution. In doing so, we will examine all available options,” Meyer said.

91 employees affected

Penn Solutions currently employs 91 people. Their wages and salaries are initially secured through Germany's insolvency payment scheme. Management and the preliminary insolvency administrator informed employees about the filing and the next steps at a staff meeting on August 28.

Meyer said support from employees, customers and suppliers would be particularly important in the coming weeks. Discussions with key stakeholders have already taken place, with the aim of creating the conditions for continued operations and preserving as many jobs as possible.

Declining sales and orders put pressure on the company

According to the company, Penn Solutions has experienced a significant decline in sales and orders, putting increasing pressure on its financial position.

Management also points to difficult conditions for manufacturing in Germany. It says the company's energy costs have tripled over the past four years and cites increasing European regulation and what it regards as unequal competitive conditions compared with Asian imports as additional pressures.

The preliminary insolvency administrator and his team will examine the economic causes of the company's difficulties in more detail as the proceedings continue.

Technical expertise to support investor search

Penn Solutions specialises in the production of knitted textiles and has extensive expertise in specialised knitting processes that allow different functional properties to be integrated within a single textile. Individual areas of a garment, for example, can be designed to provide elasticity while others provide support.

The company and the preliminary insolvency administrator see this production and process expertise, together with its experienced workforce, as important assets in the search for a continuation solution.

“Penn Solutions has an experienced workforce and special technical expertise. These are important foundations on which we can build in our search for a solution. In the coming weeks, we will intensively pursue the structured investor process that is already underway in order to find a viable future solution for the company as quickly as possible,” Meyer said.