Farewell to Gragger & Cie: Popular Viennese bakery closes!

Farewell to Gragger & Cie: Popular Viennese bakery closes!

Wien, Österreich - The traditional organic wood furnace bakery Gragger & Cie in Vienna has to close after 15 years of its existence. On May 22, 2025, company founder Helmut Gragger announced the final end of the popular company, which had made a name for itself through its biological products and a far -reaching network in Vienna. The closure hits the remaining 35 employees, who have lived in uncertainty since economic problems became known in 2022. These difficulties have been significantly reinforced by the effects of corona pandemic, falling sales and rising energy costs, as Kosmo.

In 2022, the city of Vienna decided to support the company with a financial injection of two million euros as part of the "pride in Vienna" initiative. However, these measures were not sufficient to lead the company out of the crisis. At the end of 2022, an official renovation process was initiated, which ultimately accompanied with location closings and reducing production.

The bankruptcy and its causes

The bankruptcy of Gragger & Cie was opened at the Vienna Commerce Court. The renovation procedure was conducted without self -administration, and the creditors were able to register claims by February 22, 2023. The renovation plan provided for a quota of 20 percent, which could not be realized. According to Helmut Gragger, the liabilities of his company amount to around 900,000 euros, with the liabilities over a total of over one million euros. The reasons for the bankruptcy are also the decline in the number of tourists based on pandemic measures as well as increased cost of living that reduced the demand for organic products, such as [Kurier] (https://kurier/plite-einer- Mehrfach-auschen-holzofen-kette-kette-cie/402274892).

gragger itself admitted entrepreneurial mistakes, such as a decentralized mode of production, high personnel costs and inadequate marketing. Until the closure, the company operated a total of seven branches in Vienna and one in Upper Austria. The branches in Berlin, on the other hand, are to be continued independently.

The effects on the industry

The closure of Gragger & Cie reflects a bigger problem in the industry that is shown in the entire European economy. A current survey by the Munich IFO Institute shows that 7.3 percent of German companies see their economic existence as acute. This tendency is reinforced by increasing operating and personnel costs, buying retention and uncertain order situations. Klaus Wohlrabe from the IFO Institute warns of a continued increase in corporate insolvencies, which also affects the location of small and medium-sized companies that suffer especially from the current conditions [Managerblatt] (https://managerblatt.de/deutsche-unternehe-in-der-krise-existe-und-steigende-insolvenz numbers/).

Overall, the current crisis requires urgent political measures to improve the framework conditions for companies and to stabilize energy costs. The case of the Gragger & Cie bakery is a unfortunate example of the challenges with which many companies are faced with, and shows the need to strengthen support systems.