Palmers before the end? Millions of credit ensures existence!

Palmers before the end? Millions of credit ensures existence!

A storm pulls over the traditional Palmers Textil AG: The company is about to be a financial disaster after the salaries for the 500 employees were not paid in January. This alarming situation is reinforced by a Corona loan of 14.4 million euros, which is due in June. The repayment of the loan seems to be insoluble for Palmers, and financial experts warn of a possible fate like Kika/Leiner, which has slipped into bankruptcy in a similar way, as the Show reports from OE24

group under pressure

The owners Brüder Luca and Tino Wieser and Matvei Hutman are fighting for the survival of their company, while insiders report that negotiations on the now failed loan have not shown any progress. Senator Gerald Zmuegg points out that the state is the greatest creditor. He estimates that 33 percent of the debts come from the Cofag loan, which means that taxpayers could be asked to pay in the event of bankruptcy. Palmers currently only has limited liquid funds, and the forecasts for the financial health of the company are dark, as well as the Kronen Zeitung

A shadow of the past: The company, which was founded in 1915 and has 150 locations in 16 countries, has struggled enormously with the consequences of pandemic in recent years. A loss of 14.7 million euros in 2023/24 and the decline in sales from EUR 71.5 million to EUR 66.6 million illustrate the serious location of the laundry group. There were also legal setbacks, including a fine of 100,000 euros in connection with the mask manufacturer Hygiene Austria. The pressure on Palmers could increase in the coming weeks, since a possible investor is to be announced in a message that could save the company.