Update (Sept. 11, 2026) — On Thursday, Sept. 10, 5th Avenue Products Trading GmbH filed for insolvency in a court in Waldshut-Tiengen District Court.
Dr. Andre Berbuer, an attorney in Freiburg, has been appointed as the provisional insolvency administrator. Christoph Puszkar, 5th Avenue’s managing director, will continue to lead the company’s operations, though certain financial decisions will require approval from Berbuer.
The initial filing contains no information that details why the company took this action, though it comes a week after 5th Avenue informed its customers it was temporarily halting shipments, which you can read about below. Furthermore, the filing makes no mention of any specific financials.
It’s unclear whether this is designed to be a temporary maneuver. Tabacalera S.L.U., a Spanish company that is a shareholder in 5th Avenue, the other Cuban cigar distributors and Habanos S.A., filed for pre-insolvency earlier this year. At the time, the company said the process was designed to help the corporation operate while dealing with sanctions stemming from its majority owner, Chen Zhi.
Ultimately, Tabacalera S.L.U. exited pre-insolvency in just a few months.
In addition to the insolvency filings, on Sept. 10, 5th Avenue informed retailers not to make payments to its current bank.
Earlier this week, a spokesperson for 5th Avenue replied to an email from halfwheel seeking a request for comment on the shipping pause, to which they said a press release was being worked on. If the company returns a request for comment on the insolvency, it will be added.
The original story, published Sept. 7, is as follows:
On Friday, Sept. 4, 5th Avenue Products Trading GmbH, the distributor of Cuban cigars in Austria, Germany and Poland, informed its clients that it was unable to take and deliver new orders due to what the company said were temporary banking restrictions.
A letter sent to retailers from the company cited “ongoing compliance and sanctions review affecting one of our shareholders” (translated). While it did not specify the precise issue, it is almost certainly related to Chen Zhi, a Chinese national, who owns a 28.55 percent stake in Habanos S.A. and, indirectly, a smaller stake in 5th Avenue.
Chen Zhi’s picture on the Prince Group’s website.
Last fall, the U.S. government unveiled an indictment against Chen, related to allegations that he oversaw a massive crypto scam business that was based out of Cambodia. Amongst the alleged crimes are allegations of forced labor, kidnapping and money laundering through the use of pig butchering. Earlier this year, Chen was transferred by the Cambodian government to China, where he faces the death penalty.
While none of the cigar businesses are facing allegations tied to the crypto scheme, Chen acquired billions of dollars of other assets, ranging from multi-million dollar real estate around the world, a large private jet, and a piece of the world’s largest handmade cigar business. In 2020, he was one of three East Asian investors who purchased the handmade cigar businesses that were once owned by Imperial Brands, plc. Included in that sale was the right to be the exclusive 50/50 business partner with the Cuban government in the sales and distribution of Cuban cigars around the world.
Since those allegations were unveiled, some of the Cuban cigar distributors have faced banking-related issues. In late July, the European Union introduced new restrictions on Chen.
Complicating matters is the control of Chen Zhi’s ownership shares in these businesses.
The Eastern Caribbean Supreme Court is overseeing the liquidation of various businesses in the British Virgin Islands owned by Chen. That court appointed Interpath, a restructuring firm with a presence in the British Virgin Islands, to oversee this process. Interpath has taken at least some control of these stakes, though Chen is contesting the liquidation.
Recent financial documents indicate that the Cuban government and Tabacalera/Allied Cigar Corporation S.L.U. own 56 percent of 5th Avenue, meaning, at least as of 2024, Chen owned just under 16 percent of 5th Avenue through his stake in Allied Cigar. Villiger is also a partner in 5th Avenue.
The letter was signed by Christoph A. Puszkar, the managing director for 5th Avenue. A translated version is as follows:
Dear Sir/Madam,
We would like to inform you today about a temporary restriction in our business operations.
In connection with an ongoing compliance and sanctions review affecting one of our shareholders, our banking connections are currently subject to temporary restrictions. This is currently causing limitations in the processing of our ongoing business processes.
For this reason, we are unfortunately unable to accept any new orders or ship any goods until further notice. These measures are necessary to ensure the legal and organizational framework for all parties involved.
They are expressly not related to the quality of our products, our services, or our existing business relationships.
Together with external experts and our partners, we are working with the highest priority on solutions to overcome the existing restrictions as quickly as possible and to resume regular business operations.
We deeply regret any inconvenience and potential delays this may cause and thank you for your understanding and your trust in our company. We will inform you promptly about any significant developments and, in particular, the resumption of regular business activities.
Your usual contacts will, of course, be happy to answer any questions you may have.
Sincerely,
Your 5th Avenue
Christoph A. Puszkar
Managing Director
Update — Sorry for leaving you off Poland.
Overall Score
5th Avenue Products Trading GmbH
Austria
Chen Zhi
Christoph A. Puszkar
Germany
Habanos S.A.
