Sanicare Files for Insolvency Again: German Mail Pharmacy Struggles With €80M Revenue

Sanicare, a major German mail-order pharmacy, filed for insolvency on July 15 at Osnabrück district court. The company, based in Bad Laer, Lower Saxony, generated €80 million in revenue last year but faces declining sales and steep infrastructure spending. Sanicare is operating under self-administration, meaning its current management stays in control while pursuing a restructuring plan. This is the second insolvency for the company since 2012.

Why Sanicare ran into trouble

Sanicare blamed falling revenue and high infrastructure investment costs for its financial collapse. The company did not specify exact losses but said declining sales combined with ongoing capital spending created the crisis. Foreign online pharmacies launched aggressive campaigns after Germany introduced e-prescriptions, likely pulling customers away from Sanicare.

How self-administration works

Under German insolvency law, self-administration (Eigenverwaltung) lets a company’s existing management run the business while restructuring. A provisional trustee oversees the process. Sanicare said it continues operations without restrictions and will develop a full restructuring plan in coming weeks, aiming to cut costs and restore profitability.

Impact on employees and operations

Sanicare employs 74 people and operates multiple retail pharmacies alongside its mail-order business. Owners Christoph Bertram and Heinrich Meyer said the business continues normally and they are confident in recovery. The company is asking suppliers and partners to maintain support during the restructuring process.

Market pressure on German pharmacies

German pharmacies face mounting pressure from foreign competitors and regulatory changes. The e-prescription system, introduced in recent years, shifted customer behavior and intensified competition. Sanicare’s second insolvency in 14 years reflects broader challenges in the sector as online rivals gain market share.

Final Thoughts

Sanicare’s self-administration filing signals stress in Germany’s pharmacy sector, but the company retains control and continues operations. Investors and suppliers should monitor the restructuring plan due in coming weeks to assess viability.

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