Insolvency risk in Gars: What happens to the health resort?

in the heart of Austria, in the Horn district, the "La Pura Women’s Health Resort" is in front of the final one. On Thursday, bankruptcy application was submitted to the Krems Regional Court after the operator, Health resort Gars Betriebs GmbH, could not find a way out of the financial misery. The consequences of Corona pandemic and severely increased energy costs have pushed the resort, which was only reserved for women, into the red numbers. Managing Director Viktor Hohensasser expressed himself depressed by the situation: "Unfortunately, in the past few weeks, despite intensive efforts, no economically viable solution has been found for the resort. Therefore there is no perspective on the continuation of the company," says Hohensasser.

The number of those affected is considerable: for the time being, 87 employees lose their workplace. In addition, around 42 creditors with claims of around 2 million euros are in the books, which further illustrates the precarious situation of the resort. The mayor of Gars am Kamp, Martin Falk, also confirmed the problem and referred to the desperate search for potential investors. A quick and effective solution is necessary in order to cope with the demands, but until then the future of the resort remains uncertain. According to noe.orf.at , hope for new investors will not be given up, even if there has been no concrete progress so far. The company continues until Monday, while the talks are continued with interested parties.

high losses and challenging conditions

The background of the bankruptcy are complex: According to a report by Kurier.at , the balance sheet losses of the health resort Gars Betriebs GmbH amount to a terrifying 47.7 million. The view of an improvement is cloudy because the resort suffered from poor booking behavior, especially in the months after pandemic. Covid-19 pandemic has a devastatingly influence the business result, since the traffic restrictions prevented many bookings, which was reflected in the entire profitability of the resort. VAMED invested almost 10 million euros, but considering the current circumstances seems extremely questionable.