Last week, 5th Avenue Products Trading GmbH, the distributor of Cuban cigars in Austria, Germany and Poland, filed for insolvency in a court in Waldshut-Tiengen District Court.
This move came a week after the company informed its retail customers that it would be pausing all shipments due to banking issues related to sanctions. While the company has not named specifically what the sanctions are tied to, it is believed they are related to Chen Zhi, the second-largest shareholder of Habanos S.A., meaning he is also a shareholder in every local Cuban cigar distributor. According to Habanos S.A., Germany is one of the top five markets for Cuban cigars.
In late July, the European Union sanctioned Chen regarding accusations…