According to Swiss media kleinezeitung, Koch & Gesell, a cannabis cigarette company based in Steinach, St. Gallen, has filed for bankruptcy, which also marks the collapse of Swiss CBD and tobacco brand Heimat. The company has proposed that it may restart its cannabis business. Furthermore, the subsidiary in Austria was not affected by the bankruptcy.
The main reasons for the bankruptcy were the company's cash flow problems and the loss of its tobacco license. Company founder and CEO Roger Koch explained to reporters that this was due to the company's declining revenue, poor cash flow and inability to find new funding providers.
The company has a subsidiary in Austria and launches the tobacco brand Tschick, but according to the company's commercial director Reinhard Leitner, this subsidiary was not affected by the bankruptcy of the Swiss company. Influence.
Regarding the company's next development, Roger Koch said that one possible option is to shift all the business to the more profitable cannabis industry, such as focusing on products such as cannabis iced tea, "We have a lot of expertise, experience, formula and a patent that has been registered globally,” he said.
This tobacco company was founded in 2015 and mainly uses tobacco produced in Switzerland as its main product. In 2017, they developed the world's first legal cannabis tobacco cigarette, which became popular in the market. In 2019, the company launched industrially produced pure CBD hemp cigarettes, and the tobacco production technology has applied for a patent.
However, in 2019, the company fell into financial difficulties and filed for bankruptcy protection due to investments in R&D, equipment purchases, and market expansion. It once successfully avoided bankruptcy in 2020, but now it can no longer withstand the pressure and finally submitted a bankruptcy application.