German Spa Town Outsources Operations to Avoid €10–12M Closure Costs and Save 180 Jobs
Published on 06/18/2026 at 20:47 | Redaktion boerse-global.de
The small spa town of Bad Wurzach in Baden-Württemberg faced a stark choice: restructure its municipal bath operations or shut them down entirely at a cost of €10 million to €12 million plus the loss of 180 jobs. After two years of mounting losses totalling €1.9 million in 2023 and 2024, the town council voted on Monday to spin off the operational side of the business into a newly founded limited liability company (GmbH).
Under the plan, all day-to-day spa tasks will move to the GmbH starting August 2026. The town retains ownership of the real estate and will lease the properties to the new entity. To smooth the transition, the municipality has issued a letter of comfort covering the start-up and restructuring phase. Critics caution that changing the legal form alone won't guarantee success — a significant rise in productivity within the new structure is crucial, they argue.
The restructuring comes under tighter legal rules that have applied since March 2023. Germany’s Act Implementing the Transformation Directive (UmRUG) imposes detailed information duties toward employees and creditors, requires proof of solvency, and safeguards co?determination rights. Tax aspects are equally complex: a qualified share exchange under the Transformation Tax Act can be used to optimise tax on any remaining municipal stake, provided holding periods and voting?majority thresholds are observed.
Other German municipalities are wrestling with similar problems. In Lower Saxony, Bad Nenndorf is taking over the state?run spa with a one?off payment of €12 million — but from then on, the city shoulders the full economic risk and all staff are transferred. Further south, Schopfheim’s town council is debating how to refurbish its open?air pool. One compromise plan calls for investments of around €9.5 million, contingent on federal subsidies expected in September; a fallback option would shrink the water area for €7.8 million.
The Bad Wurzach decision came during the final council meeting chaired by Mayor Alexandra Scherer. Her term officially ends on 15 July; her successor Florian Schiller, already elected on 26 April, takes office on 16 July. His first working session is scheduled for 27 July. Amid the upheaval, the town does have something to celebrate: on 20 June Bad Wurzach marks 90 years as a peat?moor health resort, with an open?day event at the health resort and discounted moor?bath treatments running through the end of July.
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