Batschari began to encounter financial difficulties in the wake of the global economic crisis of the 1920s, exacerbated by large tax increases and debt, which threatened the existence of the company and forced the city government to subsidize it with public funding to avoid losing its almost 2,000 jobs. The Batschari holdings were subsequently acquired by the Reemtsma Group, which produced the "Mercedes" brand name cigarettes until 1965.