Koch & Gesell: Swiss Cannabis and Tobacco Brand Goes Bankrupt

Business by 2FIRSTS.ai
Jan.10.2024
Koch & Gesell: Swiss Cannabis and Tobacco Brand Goes Bankrupt
Swiss marijuana cigarette company Koch & Gesell has filed for bankruptcy, leading to the closure of CBD and tobacco brand Heimat. The company plans to potentially restart its marijuana business.

According to a report by the Swiss media outlet Kleine Zeitung, Koch & Gesell, a cannabis cigarette company based in St. Gallen, has filed for bankruptcy, signifying the closure of the Swiss CBD and tobacco brand, Heimat. The company has suggested the possibility of relaunching its cannabis business. Additionally, the subsidiary in Austria has not been affected by the bankruptcy.

 

The primary reasons for the bankruptcy are the company's cash flow troubles and the loss of its tobacco license. Roger Koch, the founder and CEO of the company, explained to reporters that this was due to a decline in revenue, poor cash flow status, and the inability to find new sources of funding.

 

The company has a subsidiary in Austria and has launched a tobacco brand called "Tschick". However, according to the company's business director Reinhard Leitner, this subsidiary has not been affected by the bankruptcy of the Swiss company.

 

In regards to the company's next steps for development, Roger Koch suggested that one potential option may be to entirely shift the focus of their operations towards the more lucrative cannabis industry. This could involve prioritizing products such as cannabis-infused iced tea. Koch emphasized, "We possess a wealth of expertise, experience, formulations, and a global registered patent.

 

This tobacco company was established in 2015 and primarily focuses on producing locally sourced tobacco in Switzerland. In 2017, they successfully developed the world's first legal marijuana-infused tobacco cigarettes, gaining significant popularity in the market. In 2019, the company also launched industrially produced pure CBD marijuana cigarettes, for which they have already submitted a patent application for the production technology.

 

However, in 2019, due to investments in research and development, equipment purchases, and market expansion, the company faced financial difficulties and applied for bankruptcy protection. Although it managed to avoid bankruptcy in 2020, it is now unable to withstand the pressure and has ultimately filed for bankruptcy.

 

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