Hugo Hettich made annual clocks for 35 years — then employees sued and dollar collapsed

Hugo Hettich Uhrenfabrik was founded in 1949 in Ludwigshafen am Bodensee by watchmaker Hugo Hettich, who had previously operated a joint venture since 1942. The company specialised in 'Jahresuhren' (annual clocks) with a patented floating-balance escapement that ran for a full year on one winding. These decorative clocks were popular as wedding gifts and sold across Germany and internationally.

By the 1970s the company employed up to 250 people and exported 60% of its production, mainly to the United States, Britain, France and Italy. In 1979, the founding family sold a 75% stake to brothers Bruno and Günther Söhnle. Under new ownership the company struggled — turnover hit 9.8 million DM in 1981 but fell to 8 million DM by 1983 with a 600,000 DM loss. The product line had not been updated in years and the company had not invested 500,000 DM needed to develop a cheaper movement.

In June 1984 the company filed for judicial comparison proceedings (the German equivalent of Chapter 11). Insolvency administrator Volker Grub designed a rescue plan: cut 30 of 92 jobs and reduce excessive piecework rates. The works council agreed to a social plan. Twenty-eight employees were given notice. Then 16 of them filed protection-against-dismissal lawsuits, backed by the works council and IG Metall. The lawsuits blocked the plan. Formal bankruptcy proceedings opened on 31 August 1984.

The business was sold via asset deal in December 1984 to Herbert Trenkle Uhrenfabrik, which took over equipment, patents and 65 employees. The Ludwigshafen branch kept operating under lease. Then in spring 1987 the US dollar collapsed from 3.30 DM to 1.80 DM within months. Hugo Hettich's main export market evaporated overnight. Trenkle's own plant had already filed for bankruptcy. The Ludwigshafen factory closed its doors on 31 May 1987.