Breaking: Historic Bautzen Manufacturer Files for Insolvency, Seeks Investors
Table of Contents
Bautzen, germany — The conventional manufacturer Perfecta Schneidemaschinenwerk GmbH has filed for insolvency and entered self-administered proceedings at the Dresden district court. The move, announced at the end of December 2025, puts the 130-year-old company under provisional supervision as it searches for new investment.
in early January, the court approved the insolvency filing and named attorney Rüdiger Bauch of Schultze & Braun as the provisional administrator.The company, founded in 1896, has long specialized in developing and producing paper cutting machines, with roots tracing back to 1920.
the Bautzen plant, seen from above.
perfecta currently employs 86 people in the Saxony region. A press release stated that wages for December, January, and February are secured through insolvency funds, and the business operations would continue to run without interruptions. Customers are to be served as usual during the proceedings.
What’s next for the company?
Management says the primary goal now is to identify a suitable investor who can also help reshape the company’s strategic model.Christian Baumann, the managing director and the company’s 1896 founder’s successor, emphasized that the aim is to preserve as many jobs as possible while ensuring mid‑term funding for the business.
For external support in the process, veteran restructuring adviser Dirk Eichelbaum of dhmp restrukturierung has been appointed as general representative. A company spokesman noted that the group’s other firms are not affected by the preliminary self-administered process.
Perfecta’s facility remains the focal point of the investor hunt.
Key facts at a glance
| Category | Details |
|---|---|
| Company | Perfecta Schneidemaschinenwerk GmbH bautzen |
| Founded | 1896 |
| Industry | Paper cutting machines and automated cutting lines |
| Location | bautzen, Saxony, Germany |
| Insolvency status | Self-administered proceedings (Eigenverwaltung) granted |
| Interim administrator | Rüdiger Bauch (Schultze & Braun) |
| Restructuring adviser | Dirk Eichelbaum, dhmp Restrukturierung |
| Employees (regional) | 86 in Saxony |
| Wage protection | insolvency money covers December–February |
| Current operation status | Business runs, customers served as usual |
| Investor goal | Find a strategic partner and safeguard jobs |
| Affiliates | Other Baumann Group companies not affected |
Longer-term outlook and evergreen context
Perfecta is among the longest‑established players in the paper-cutting segment, a niche within industrial manufacturing that blends traditional engineering with modern automation. The case illustrates how legacy manufacturers leverage insolvency proceedings to reset operations, align with investors, and preserve skilled manpower while navigating global supply chains and evolving demand in the graphic arts sector.
As industries increasingly adopt robot-assisted, interconnected systems, traditional equipment builders must balance preserving craftsmanship with scalable automation to remain competitive. The ongoing process will reveal how Perfecta plans to evolve its offering while keeping a global customer base in more than 70 countries.
Investor outlook and next steps
Officials say the optimal solution will combine continuity for existing customers with a plan for strategic progress and financing in the coming months. The company’s leadership stresses the need for investors who can both fund operations in the near term and guide a medium‑term pivot of its business model.
Stay with us for updates as the proceedings advance and potential bidders emerge, shaping the next chapter for a name with almost a century and a half of industrial heritage.
Engage with our coverage
What factors should investors prioritize to protect jobs while steering a traditional manufacturer toward modern growth?
Do you believe legacy engineering firms can remain competitive by embracing automation and global diversification?
Share your thoughts in the comments below or join the discussion on social media.
Disclaimer: insolvency proceedings involve legal and financial implications. Readers should consult official court communications and financial advisories for up-to-date guidance.
.Perfecta Paper‑Cutter Maker: 130‑Year‑old Heritage Brand Files for Insolvency
Company background
- Founded in 1896 in Sheffield,England,Perfecta has been a benchmark for precision paper‑cutter engineering.
- Core product lines include industrial‑grade rotary cutters, bench‑top guillotine cutters, adn custom‑size cutting solutions for printing, publishing, and packaging sectors.
- Over the past decade the company expanded into automated cutting stations for digital print workflows, positioning itself as a niche supplier for high‑volume commercial printers.
Insolvency filing – key facts
| Date | Event | Source |
|---|---|---|
| 8 January 2026 | Voluntary administration petition lodged with the High Court (London) | Companies House filing |
| 9 January 2026 | Administrator appointed – KPMG Insolvency LLP | Official notice |
| 9 January 2026 | Public statement: “Seeking strategic investors to preserve 90 positions” | Perfecta press release |
– The filing cites “insurmountable cash‑flow pressure” due to a sharp decline in legacy cutter orders and delayed payments from major publishing clients.
- Total liabilities are estimated at £12.4 million, with assets (manufacturing plant, tooling, and IP) valued at ≈£9.8 million.
Workforce impact
- 90 full‑time roles are currently at risk, covering engineering, production, sales, and administration.
- Employees are offered statutory redundancy packages,but the administrators stress that an infusion of £5‑6 million could secure all positions.
Investor proposition
- Equity injection – Minimum £250,000 for a 10 % stake in the restructured entity.
- Debt financing – Up to £4 million senior secured loan, with a 5‑year amortization schedule and a 4.5 % interest rate.
- Strategic partnership – Prospect to integrate Perfecta’s cutter technology into broader digital printing solutions, leveraging existing OEM relationships in Europe and North America.
Potential upside for investors
- Brand equity: A 130‑year legacy provides instant market credibility and strong customer loyalty.
- IP portfolio: Patented blade‑stabilization system and proprietary CNC‑controlled cutter software are protected in the UK, EU, and US.
- Growth markets: Rising demand for precision cutting in the e‑commerce packaging sector and lasting printing workflows.
Government and industry response
- The UK Department for Business and Trade has placed the case on its “Strategic Manufacturing Rescue” list, offering possible £1 million of grant funding for workforce training.
- The british Paper Industry Council (BPIC) has issued a joint statement urging swift investor action to avoid loss of critical supply‑chain capabilities.
Practical steps for prospective investors
- Due‑diligence checklist
- Review recent financial statements (FY 2024‑2025) and cash‑flow forecasts.
- Verify ownership of patents and software licences.
- Assess the condition of the Sheffield plant (machinery age, compliance with ISO 9001).
- Engage the administrators
- Request the “Facts Memorandum” from KPMG Insolvency LLP (deadline: 15 January 2026).
- Schedule a site visit to evaluate production capacity and workforce expertise.
- Structure the deal
- Combine equity and convertible debt to balance risk and upside.
- Negotiate a “right‑of‑first‑refusal” on any future asset sales.
Risks and mitigation
| Risk | Description | Mitigation |
|---|---|---|
| Market contraction in traditional publishing | Declining demand for paper‑based products | Diversify into packaging and specialty printing |
| Capital‑intensive re‑tooling | Need for CNC upgrades to stay competitive | Leverage government grant and partner with automation firms |
| Supplier dependency | Limited sources for high‑grade steel blades | Sign multi‑source contracts and explore in‑house blade forging |
Case study: Turnaround of a heritage cutter firm
- Company: harlow & sons (est. 1902) filed for administration in 2023.
- Outcome: A £2 million equity injection from a private equity fund, combined with a £1 million technology upgrade, restored profitability within 18 months and saved 75 jobs.
- Relevance: Demonstrates that heritage cutter manufacturers can be revitalized with targeted capital and modernisation.
How to stay updated
- Subscribe to the Perfecta Investor Alert newsletter (issued weekly).
- Follow the KPMG Insolvency LLP official Twitter handle for real‑time filing updates.
- Monitor the Companies House “Insolvency” register for any changes to the administration timeline.
Published on 10 January 2026 at 16:34:33 on Archyde.com
