Instafreight has filed for insolvency with a court in Germany – but its founder remains confident that restructuring could see the business continue.
Having filed at the Berlin-Charlottenburg bankruptcy court on Wednesday, it was reported that while its 3PL forwarding division had been temporarily discontinued, its 4PL transport management unit would operate as normal.
Instafreight founder and MD Philipp Ortwein told German media yesterday the reason for the insolvency was over-indebtedness, not liquidity problems, a potential investor’s withdrawal during the current financing round having hampered things.
Despite the difficulties, Mr Ortwein said because the business was “flourishing”, a restructure could resolve its issues; although it was also reported that potential buyers are being sought.
Mr Ortwein’s vision would see the business focused on digital transport management activity, and he noted that improving profitability in this segment rather than growth had been the company’s core focus this year.
In the interim, international law firm White & Case has been appointed as its provisional insolvency administrator.