Goldwelt jewelers in Austria: bankruptcy meets 60 employees!

Goldwelt jewelers in Austria: bankruptcy meets 60 employees!

Graz, Österreich - The Goldwelt Juweliere & Uhrmacher GmbH has submitted an application to the regional court in Linz to open a renovation process without self -administration. The company, with 13 branches throughout Austria, including locations in Graz, Klagenfurt and Villach, is in a preservative location. Around 60 employees and 53 creditors are directly affected by the bankruptcy, such as orf oö . The main reason for the bankruptcy is in the massive sales declines during corona pandemic, severely increased rental and lease prices as well as increased energy and personnel costs.

Negotiations with a potential investor who were intended as a lifeline ultimately failed what made bankruptcy inevitable. A renovation plan is proposed to the creditors that should provide a repayment of only 20 percent within two years, which also exacerates the tense situation. Details of the assets and liabilities are currently still unknown, as Kleine Zeitung reported.

causes of the crisis

The diverse reasons for bankruptcy are primarily drop in sales during the Corona crisis and the significantly increased operating costs that have significantly burdened the economic situation of gold world. This fact not only makes the business situation appear precarious, but also questions the existence of the entrepreneurial activity of the jewelers. The further financial burdens show the entire extent of the crisis in which the industry is located.