Insolving wave at KTM: Avocodo and Pierer E-Commerce affected!

Insolving wave at KTM: Avocodo and Pierer E-Commerce affected!

In a dramatic turn, two other companies in the KTM group had to register bankruptcy on January 7, 2025: Avocodo GmbH and Pierer E-Commerce GmbH. These bankruptcies come into force just five weeks after the insolvency of the motorcycle manufacturer KTM. The Alpine Officer Association reports that both Avocodo GmbH with 126 employees and Pierer E-Commerce GmbH with 25 employees have initiated a renovation procedure without self-administration.

direct consequences of the KTM bankruptcy

The bankruptcy of Pierer E-Commerce GmbH is particularly serious because the company is responsible for the operation of the company websites and for online sales. Around 96 percent of sales comes from services for KTM, which makes the current situation even more critical. According to krone.at , the sum of the liabilities was around 4 million euros for Pierer E-Commerce GmbH, while Avocodo GmbH is confronted with liabilities of around 6.8 million euros. The lack of payments from their main customers made these bankruptcy inevitable.

In addition, an insolvency proceedings against Vöcklabrucker Metallgießerei GmbH opened at the end of December 2024, another company that is closely linked to the KTM group. These developments show the domino effect that KTM's difficulties have on the entire group of companies. According to 5min.at , however, the continuation of all affected companies is planned and economically possible, which offers at least a silver lit on the horizon.