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Two German shipyards have filed applications for insolvency, authorities said on Thursday.
Flensburger Schiffbau-Gesellschaft (FSG), based in the northern city of Flensburg, and Nobiskrug in nearby Rendsburg are affected, according to spokesmen for district courts in Flensburg and Neumünster.
The two sites are owned by the Tennor Group, a holding company founded by German investor Lars Windhorst.
The shipyards have been struggling financially due to a lack of orders, with salaries repeatedly being paid late.
Windhorst received sharp criticism from politicians in the northern state of Schleswig-Holstein, with Premier Daniel Günther calling on him to stand aside.
Günther has previously said the possibility of insolvency would not be a shock. “Perhaps it could also mean a new opportunity,” the state premier said in Flensburg last month.
Staff meetings are due to be held with insolvency administrators, union representatives and government officials on Thursday.
Germany’s shipbuilding industry has suffered from soaring costs in recent years, with the Meyer Werft shipyard – a major employer in northern Germany and a leading builder of cruise ships – set to receive a public bailout from the German government.
Last week, the European Commission ruled under the EU Merger Regulation that the government rescue package does not pose any competition concerns across the EU’s common market.
