Gigaset, the former telephone division of the Siemens Group, is insolvent. The provider of communications technology has therefore submitted an application to the responsible district court in Münster to open standard insolvency proceedings for Gigaset AG as well as an application to open self-administered insolvency proceedings for the subsidiary Gigaset Communications, the company announced on Tuesday evening. The main reason for this is an unexpected decline in sales in the second half of the year and business development that was significantly below plan. In addition, there is persistent and increasing weak demand as well as purchasing reluctance in Germany and Europe.
Gigaset, based in Bocholt, claims to be Europe’s market leader for cordless telephones with around 850 employees. The company also offers Android-based smartphones, cloud-based smart home offerings and business telephony solutions. The development, production and sales activities for cordless telephones will continue unchanged despite the bankruptcy, it said. The aim is the sustainable restructuring of the economic basis.