Sovello lays off more workers amid dwindling hopes of a rescue

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For economic reasons, the continuation of Sovello is no longer possible, said company liquidator, Lucas Flöther. Consequently, around only 50 employees will remain, down from 170. The affected employees will be let go on November 1.

He added that talks with potential investors would continue, although the extremely difficult economic environment will make it challenging to find a suitable candidate.

"As feared, the sales process is very difficult. To date, an adequate offer has not been made," said Mr Flöther, adding that interested parties had reworked their deals, both financially and conceptually, but that they were not sufficient.

Sovello was forced to file for insolvency in May. Initially, the company aimed to reorganize itself under self-administration, however, in mid-August the Dessau district court opened bankruptcy proceedings, having rejected its self-administration application.

Following this, Sovello had to cease production, meaning the 1,000-strong workforce was reduced to 170. Their task was to keep production ready, in the event of a sale. According to Sovello, 200 of its former employees have now found a new employer in the region.

Translated and edited by Becky Beetz.