German textile company ZEGO Textilveredelungszentrum has filed for insolvency, blaming the financial fallout from a March 2026 cyberattack that knocked its production offline for nearly six weeks. ZEGO joins a growing list of companies that say a digital break-in was commercially fatal.
The Bavaria-based company provides textile finishing and treatment services for customers across automotive, workwear, and technical textiles industries. Managing director Johannes Zenglein described the filing as “one of the most difficult steps in our company’s 37-year history.”
“The cyberattack of March 29, 2026 impacted our company to an extent that we could not fully compensate for despite our best efforts,” Zenglein wrote. “The consequences resulted in a production outage of nearly six weeks and significant financial strain.”
ZEGO did not disclose the type of attack or whether ransomware was involved. Insolvency proceedings have been initiated but the company plans to keep production running while administrators attempt to restructure and preserve jobs.
The case echoes the collapse of British haulage company Knights of Old after a ransomware attack left more than 700 people out of work. Analysts note that the highest cost of a cyberattack is often not the ransom but the financial damage from prolonged downtime.
