Preliminary insolvency proceedings opened at Göttingen-based Steidl Verlag

Another pillar of the publishing house is the worldwide rights to the work of Günter Grass, which Steidl has held since 1993. Beyond that, the house cooperated with the internationally active gallery of David Zwirner and publishes the works of Icelandic Nobel laureate Halldór Laxness. According to its own statements, the publisher cares for "many of the most renowned contemporary photographers and artists."

Background: Publishing Profile and Program

According to Göttingen-based labor law attorney Sascha John, the insolvency filing is tied to a longer-standing conflict over outstanding salaries. John states that he has represented the majority of Steidl's employees for one and a half years and has conducted several dozen proceedings during that time. "According to the words of Göttingen-based labor law attorney Sascha John, who according to his own statements represents the majority of Steidl's employees, several lawsuits remain open," it is stated in this regard.

In recent months, wages had either not been paid at all or had been paid late "to a considerable extent," as John explained. In individual cases, five or six months of salary had remained outstanding. The attorney quantifies the outstanding net wage claims at a mid to high five-figure amount. Almost always, it had come to forced enforcement, and only then had payments been made.

Outstanding Wages and Lawsuits

In addition to the outstanding salaries, unpaid social security contributions played a central role in the opening of the proceedings. This was confirmed by the office of insolvency administrator Liese. The exact claims and the amount of the liabilities are being examined in the ongoing preliminary proceedings.

Publisher Gerhard Steidl commented on the economic situation to NDR: "Die Zeiten sind sehr schlecht für das Buchgewerbe." Whether the preliminary proceedings will lead to a final insolvency or whether a restructuring will succeed now depends on the course of the coming weeks.

With the preliminary insolvency proceedings, the publishing house initially gains time to sort out its financial situation under supervision. In such proceedings, it is customary for the preliminary administrator to review business operations, inform creditors, and explore possible restructuring options. As things stand, business operations at Steidl initially continued.

What Now Happens in the Proceedings

For the staff, the opening of the proceedings is nevertheless a drastic step. With Sascha John, the employees have an experienced labor law representative at their side who has already been acting against the payment defaults for one and a half years. Insolvency wages can be pre-financed through the Federal Employment Agency in such cases, provided the claims are established.

The industry is observing the case with concern. Steidl is considered one of the few German publishers to hold a leading position in the international art and photography book market. With an end or a break-up of the house, the loss of an independent production chain would threaten – Steidl prints many books in its own workshop in Göttingen.

It remains unclear so far whether investors or partners can be found to continue the publishing house. The coming weeks will show whether the restructuring succeeds or whether the preliminary insolvency will lead to final proceedings.