Food hygiene inspectors stopped all production at the factory in Neufahrn near Munich, forcing the company to buy bread from other producers to fulfil orders. This could never last for long and on Thursday evening Müller Brot announced it could not survive, and declared bankruptcy.
A statement from Müller Brot said the production halt had had led to a collapse in turnover.
“But preparations for the resumption of production are running at full speed despite that,” the statement said. Temporary insolvency administrator Hubert Ampferl released the money necessary to do so, lending hope to the 1,100 workers at the factory that their jobs might be saved.
Hygiene authorities had registered serious problems at the factory for years, with dirt and cockroaches repeatedly found there since 2009. Foodstuffs and bread dough had been destroyed due to this, while the discount supermarkets Lidl and Aldi banned the company's products from their shelves.
The last two weeks have been used to take apart all the machinery in the factory and clean everything.
Bavarian bakery rival Biendl und Weber was also told on Thursday it should also stop production after hygiene inspections in its factory in Donaustaf found insects and two dead mice. Black mould was also discovered in production areas, and crusts found on machinery. The firm employs 65 staff and runs 18 shops in Regensburg and the surrounding area.