Insolvency flood in Carinthia: companies fight for survival!

Insolvency flood in Carinthia: companies fight for survival!

With an alarming increase in bankruptcies, Austria's economy is faced with, especially in retail and fashion industry. According to the Alpine vendor association, around 80 percent of the company slides are due to management errors and a lack of commercial knowledge. Beatrix Jernej, the head of the association, emphasizes: "Many companies have no sustainable business model and only adapt to the changed framework." In Carinthia, the debts reached an unprecedented maximum of 357 million euros, which underlines the urgency of renovation measures, as reported.

The German fashion industry remains turbulent. The number of bankruptcies has increased by a quarter compared to the previous year, which is alarming. Companies like Esprit, which close all 56 branches in Germany by the end of the year, face massive challenges. The Austrian company Gössl is also affected and has filed for bankruptcy. Zalando also plans a fusion with About You to meet the challenges of the market. According to the Creditreform, the insolvencies could increase at a record level in the coming year, which increases the uncertainty, such as Fashion United reported.

The bankruptcy proceedings in Carinthia and the broader fashion industry show that many companies, both large and small, have difficulties to assert themselves in a rapidly changing economic climate. René Jonke von KSV 1870 attributes the financial problems of many companies to the necessary adaptation to the market conditions. More and more entrepreneurs have to pull the ripcord while the future is on the brink of numerous jobs. The coming months will decide whether these companies will be able to stabilize or finally disappear from the scene.