Traditional bakery Rackl in Olching is fighting for survival!

Traditional bakery Rackl in Olching is fighting for survival!

Bad news for the palate lovers in Olching: The traditional bakery Rackls Backstubn is struggling with financial difficulties. Founded in 1889, the company is run by Xaver Rackl in the fourth generation and has earned an excellent reputation. But things are currently looking bleak: The bakery's application to initiate restructuring proceedings under self-administration was recently submitted to the Munich District Court Mercury reported.

On September 19, the application received approval from the court. The self-administration procedure has the advantage that the management still has access to the insolvency assets. However, this happens under the supervision of an administrator. The goal: to position the group of companies in a sustainable manner and to secure around 470 jobs. The employees have been informed since the proceedings were opened and are kept up to date with the further progress.

Branch network and challenges

The traditional bakery has a considerable branch network with 30 locations in the districts of Fürstenfeldbruck, Starnberg and the greater Munich area. A high proportion of sales – around 40 percent – ​​comes from the delivery business. Nevertheless, Rackls Backstubn is faced with a number of challenges, including the aftereffects of the corona pandemic, sharp increases in raw material and energy prices and changing consumer behavior, with many customers increasingly gravitating towards discounters. The price pressure in the delivery business has further exacerbated the situation.

Despite these difficult circumstances, a spokeswoman for the company expresses optimism about the restructuring opportunities within the self-administration process. “We still have good business and many loyal customers,” said the spokeswoman. Operations in the branches and in the delivery business should continue without restrictions.

Future outlook

Whether Rackls Backstubn will manage to free itself from financial difficulties will become clear in the coming months. Efforts to achieve a sustainable renovation are in the starting blocks and there is great hope for a successful restructuring. In a world in which traditional companies often have to fight hard for their survival, the situation surrounding Rackl is not only of local importance. We will have to keep a close eye on developments here; especially for the numerous employees and loyal customers who are hoping for a positive turnaround.

Regarding online presence, it is also noted that ICANN rules require domain registrars to update the domain owner's contact information. However, this is a completely different business that currently plays no role for Rackls Backstubn while they are in the focus of their essential business activities. Search engine optimization information that relates to websites is of secondary interest to the bakery when it comes to the immediate challenges it faces.