BREAKING NEWS: Habanos Germany enters bankcrupsy proceedings

On September 9, 5TH AVENUE PRODUCTS TRADING-GmbH, the official Habanos distributor for the German market, entered bankcrupsy proceedings according to the German consumer magazine Verbraucherschutzforum, which first published the news. Cigarrvärlden has not been able to determine the identity of the entity that filed the petition.

Last friday German retailers received an email from 5th Avenue signed signed by CEO Christoph Puszkar stating that the operation was to be halted citing limitations in banking relationships as the reason, due to a review of regulatory compliance and sanctions linked to one of its shareholders [Chen Zhi, editor's note].

Read more:  Analysis Brief: Potential Sanctions for European Companies within the Habanos network

The German bankruptcy process differs from the Swedish one. Put very simply, there are three options in Sweden: liquidation, restructuring (which could be equated to the American chapter 11), and bankruptcy.

In Germany, there is no equivalent legal mechanism for restructuring. Bankruptcy is also not possible if a company lacks assets, because the bankrupted party must pay the bankruptcy trustee's fees - not the government, as is the case in Sweden. A German company without assets is therefore liquidated straight away as a first measure.

The German bankruptcy petition can therefore be seen as a hybrid of all three. At first upon filing with court a bankruptcy trustee is appointed who acts as a restructuring administrator. At the same time, the company enters a state similar to a Swedish restructuring or American chapter 11, where operations can continue but all decisions are made by the bankruptcy trustee. The Anglo-Saxon legal term is that the company is placed in receivership (or under administration).

Depending on the bankruptcy trustee's assessment, the company can then either be restructured or declared bankrupt. Liquidation is less likely, as 5th Avenue had a turnover of EUR 63.8 million and a profit of EUR 14.4 million in 2024. Thus, there should be sufficient assets to pay the bankruptcy trustee.

Attorney Dr. André Berbeur at the law firm BSK Berbuer Speier Kuhn has been appointed as the trustee. The case number is 4 IN 194/26 at the district court in Waldshut-Tiengen.

Earlier in July this year, the Swedish Habanos-owned company Elite Trading Scandinavia AB was placed into voluntary liquidation after its tobacco license was revoked due to its ownership connection to Chen Zhi.

Image 1: Screen shot from https://www.northdata.de

According to the 2024 books of Altabana and Tabacalera, as well as the books of Allied Cigar Corp between 2021 and 2024, Altabana owns 56% of 5th Avenue. According to German registries, Altabana owns 80% of 5th Avenue, and the remaining 20% is owned by the German-Swiss family business Villiger. 

Footnote: Cigarrvärlden seeks Christoph Puszkar, Habanos communications deptartment, Fernando Dominguez, Interpath, Villiger and Dr. André Berbeur for a comment.

Christoph Puszkar refers Cigarrvärlden to Habanos communications deptartment and is not able to comment.

Habanos S.A:s official comment is “Thank you for your query. Habanos S.A. is working closely with its distribution partners worldwide and taking all necessary steps to safeguard business continuity, strengthen the resilience of its distribution network and ensure the continued availability of its products to aficionados globally.

Our priority is to protect the long-term viability of the business and continue providing our international community of aficionados with access to Habanos and the exceptional experience associated with our brands.

Habanos S.A. does not comment on specific circumstances or individual business matters concerning companies within its distribution network.”

If you work for a reputable publication that offers protection to your source, we are open to the possibility of sharing certain working material (research), raw data and full names. Contact our editorial team for more information.

Published: 14:52 Updated: 14:45 Journalist: Editorial team Photo: Wikipedia commons public domain, AI montage (gemini) 

Read more about Cigarrvärldens coverage on Cuba & Habanos:

12 September 2025 - Cuban Cigars And Their Asian Partners – Slave Trade, Fraud And Money Laundering. Under The Nose Of The Regulatory Agency In Gothenburg, Sweden.

25 October 2025 - DOJ Tightens Noose On Owner Behind Cuban Cigar Giant

26 October 2025 - Prince Groups latest rebuttal published in full

4 November 2025 - Swedish Habanos Importer gets Reprieve to present Chen Zhi's Cambodian tax and criminal records

9 November 2025 - Klarna blacklists Cuba and freezes payments to Swedish cigar dealers?

12 December 2025 - Chen Zhi to be removed from Habanos

7 January 2026 - Breaking News: Habanos Swedens tobacco license revoked

12 January 2026 - Analysis: What are the future prospects for Chen Zhi, Habanos in Sweden & globally?

2 June 2026: The International Crackdown on Habanos: Swedish Distributor Faces Independent Turmoil

5 June 2026 - Cuban Cigars Facing Potential EU Ban Amid Forced Labor Reports

15 June 2026 - BREAKING NEWS: The Courts Verdict - no Swedish tobacco license for HABANOS

4 August 2026 - BREAKING NEWS: EU Sanctions Against Chen Zhi and Prince Group

6 August 2026 - The Consequences of EU Sanctions Against Chen Zhi for Sweden in Particular and the EU in General

12 August 2026 - Habanos' Proximity to Sanctioned Entities and the Cuban Revolutionary Armed Forces (FAR)

13 August 2026 - BREAKING NEWS: Habanos Sweden Formally Applies for Liquidation

20 August 2026 - Analysis Brief: Potential Sanctions for European Companies within the Habanos network

6 September 2026 - Habanos uses national orchestra´s name as cover for illicit revenue generation

7 September 2026 - BREAKING NEWS: Habanos Germany halts operations due to EU sanctions against Chen Zhi

We use AI and Google Translate for translations, with some review to enhance readability. Pardon the Spanglish.

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