Illertissen – The insolvent pharmaceutical manufacturer R-Pharm is ceasing operations following a failed search for investors. This move results in the loss of approximately 280 jobs at the site. Insolvency administrator Markus Fröhlich informed the workforce of the closure on August 26. The final two prospective buyers were unable to demonstrate secured financing for an acquisition. Consequently, following the insolvency, the administrator is now initiating the shutdown of the long-established facility. According to his account, sanctions against Russia, Russian countermeasures, and the withdrawal of customers had previously significantly exacerbated the economic situation.
R-Pharm fails to find investor for plant following insolvency
Talks with two interested parties continued until the very end, but neither could provide the necessary proof of funding. A buyer would have needed to cover more than just the purchase price; substantial additional funds would have been required for working capital, securing new orders, and ramping production back up. Ultimately, the rescue effort failed not merely due to a lack of interest, but primarily because of the financing.
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As recently as late July, interim financing had secured operations for the month of August. This bought the insolvency administrator several weeks for further negotiations. However, R-Pharm had stopped accepting new orders as early as mid-June. Consequently, the site could no longer sustain itself in the long term without fresh capital.
Insolvency proceedings opened in May
The Neu-Ulm District Court initially ordered preliminary insolvency administration in March. On May 1, the court opened formal insolvency proceedings due to illiquidity and over-indebtedness. According to commercial register records, the opening of proceedings also triggered the dissolution of the company. Nevertheless, production initially continued as the administrator sought a solution to keep the business running.
According to the insolvency administrator, the situation had deteriorated significantly since the start of the war in Ukraine. R-Pharm has been part of a Russian group since 2014, while Western sanctions increasingly strained business relations. At the same time, Russia responded with its own countermeasures. As a result, according to the administrator, an increasing number of customers and business partners withdrew.
280 Employees to Lose Their Jobs
The breakdown of negotiations has direct consequences for the approximately 280 employees. Employment contracts are set to terminate at the end of August, with the majority of the workforce being released from their duties. However, around 50 to 60 employees will remain with the company on a temporary basis; they are tasked with securing the facilities and overseeing the orderly shutdown.
This marks the end of an industrial history in Illertissen that dates back to 1849. Pfizer took over the site in the early 1970s, followed by the Russian group R-Pharm in 2014. Most recently, the plant developed, manufactured, and packaged pharmaceuticals for international markets. Additionally, the works council and the insolvency administrator reached an agreement regarding the reconciliation of interests and a social plan for the employees.
Author: Blackout News
Sources: Welt (27.08.26) – BR24 (26.08..26) – Pharma+Food (26.08.26)