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What happens if your e-commerce host goes insolvent—and how do you keep your shop online and your data safe?
Modern Solution GmbH & Co. KG, an IT service provider for online retailers, is reported to be insolvent. For merchants, this matters because a provider failure can take more than a website offline. It can also interrupt email, inventory sync, marketplace connections, and order processing across Amazon, eBay, Otto, and other channels.
The company, founded in 2021 and based in Gladbeck, is listed with a broad scope: hosting, marketplace connectors, interface development, custom programming, consulting, and the sale or delivery of shop and merchandise-management systems. In practice, that mix often makes one vendor a single point of failure. When that point fails, retailers can lose operational control in minutes.
Why this case draws attention
Many in the e-commerce and IT community recognize the name from a separate 2021 episode. Reports at the time described a poorly secured connection that allegedly allowed third parties to view sensitive merchant data, such as orders, addresses, and account-related information. An IT specialist, while troubleshooting software installation for a client, reportedly found a database connection to an external server where data moved without adequate protection. The server was described as an e-commerce server associated with Modern Solution.
When the issue was not resolved quickly, the specialist went public. The aftermath escalated into criminal proceedings in Germany, cited under sections of the German Criminal Code related to preparing to spy on data and alleged misuse of secrets. Courts ultimately imposed a fine of 3,000 euros on the developer, and the verdict is described as final in the source narrative.
That background shapes how merchants interpret today’s events. When a vendor has both security controversy and operational disruption in its history, trust and continuity become immediate business concerns.
What is currently being reported
A report by Mark Steier on Wortfilter states that Modern Solution GmbH & Co. KG is insolvent and that merchants faced severe disruption when key services became unavailable. The claim includes service outages that reportedly affected:
- Hosted shops and domains
- Email availability
- Interfaces and marketplace connections
- ERP or inventory tooling used in daily fulfillment workflows
The operational impact is straightforward: if integrations stop, orders cannot sync, stock cannot update, and shipping workflows stall. A retailer may still have demand, but cannot process it reliably. In multi-channel commerce, that can trigger account health issues, cancellations, and customer support escalation quickly.
The report also notes an update: systems later came back online, apparently after intervention, but operated in an emergency state with limited performance. The practical takeaway is not “everything is fine.” The takeaway is that merchants got a narrow window to secure access and protect their data.
How merchants should respond (risk-first, practical steps)
If a critical vendor shows signs of insolvency or prolonged instability, treat it as a continuity event, not an IT inconvenience. The priority is to keep selling while preserving evidence, data integrity, and customer trust.
- Secure data exports immediately. Pull orders, customers, products, inventory, invoices, shipment records, and logs from every reachable system. Store copies in at least two controlled locations.
- Decouple your domain and DNS control. Ensure the registrar account is yours, with MFA enabled, and confirm you control DNS records. Vendor-hosted DNS is a common hidden dependency.
- Stabilize marketplace operations. If connectors fail, switch to alternate integrations or temporary manual workflows so that stock and shipping confirmations still flow.
- Create a “minimum viable store” fallback. A basic storefront on a separate host can preserve revenue while deeper systems migrate. The goal is continuity, not perfection.
- Check exposure and compliance obligations. If there is any indication of customer-data risk, document what happened, when, and which systems were affected. Then assess whether notification duties apply under your governing rules (for example, GDPR in the EU).
- Demand a written transition plan. Ask for service status, data access instructions, and a timeline. If no reliable response arrives, move to exit planning and replacement procurement.
What this means for vendor selection going forward
The core lesson is not “avoid small providers.” The lesson is to manage concentration risk. Any provider can fail. A resilient setup reduces damage when that happens.
Aim for contracts and architecture that keep these assets under your control:
- Domain registrar access and DNS ownership
- Independent backups with tested restores
- Documented API access and data portability
- Secondary hosting or a rapid redeploy option
- Clear SLAs, escalation paths, and exit clauses
For retailers, provider insolvency is not only a financial issue. It is an operations, security, and reputation issue that can turn into lost revenue within hours.