Innsbruck shocked: Hard Rock Café reports bankruptcy!

Innsbruck shocked: Hard Rock Café reports bankruptcy!

Maria-Theresien-Straße, Innsbruck, Österreich - The HRC IBK Betriebs GmbH, operator of the Hard Rock Café in Innsbruck, has filed for bankruptcy. According to kosmo , a renovation process with self-administration was opened at the regional court in Innsbruck, which should regulate the future of the traditional restaurant. The outstanding liabilities amount to around 2.1 million euros, while the company's assets are estimated at around 166,000 euros.

About 39 employees are directly affected by the bankruptcy. The franchisee of the Hard Rock Café in Innsbruck, in operation since January 2017, is confronted with serious financial difficulties because of the after-effects of COVID-19 pandemic, changed consumption behavior and increased personnel and energy costs. This development is part of a worrying trend in gastronomy, as experts in a report by Kleine Zeitung note.

challenges in gastronomy

The causes of the bankruptcy of the café are symptomatic of the general situation in the catering trade, which is severely affected by the crises of recent years. According to Creditreform Price adjusted under the level of 2019, with an increase in bankruptcy by 27 percent between 2022 and 2023. Young companies and small businesses are particularly affected, which emphasizes the situation in the Innsbruck Hard Rock Café.

The bankruptcy plan provides for the creditors to offer a quota of 30 percent, whereby the payments should be made within two years after the plan is accepted. However, if the procedural costs are taken into account, the theoretical quota could only be around 7.87 percent. A total of around 40 creditors are affected by the bankruptcy that must now assert their claims.

With this bankruptcy it becomes clear that the catering in Tyrol is under considerable pressure and that many companies - like the Hard Rock Café - try to keep up with renovation measures in order to escape the impending end. It remains to be seen whether the presentation plan presented can be implemented successfully or whether further bankruptcies will follow in the area of ​​gastronomy.