Insolvency sounds from Austria: Furniture manufacturer Weissengruber in the crisis!

Insolvency sounds from Austria: Furniture manufacturer Weissengruber in the crisis!

shock for the Austrian furniture industry: Conen Möbel GmbH and the traditional manufacturer Weissengruber are both on the threshold. As reported by the Alpine Officer Association (AKV), a bankruptcy proceedings at the Krems Regional Court on the Danube opened for Conen Möbel GmbH. This company, known for school furniture, has suffered massive financial losses in corona pandemic. The debt is a terrifying 1.3 million euros, while the assets are only 180,000 euros. A mass manager has already been appointed, and the option of a renovation plan is still in the room, such as 5min.at

But Conen is not only in this difficult situation. The furniture manufacturer Weissengruber, based in Ried, has also submitted an application to open a renovation process, since increasing wage, material and energy costs as well as continuing drops in sales led to a financial imbalance. With liabilities of over 7 million euros, the bankruptcy concerns 56 employees and 72 creditors, such as fr.de . Weissengruber, a family business with over 60 years of tradition, aims to stabilize its location through a renovation plan and offers its creditors a repayment rate of 20 percent.

challenges and perspectives

The economic challenges that both companies burden are noticeable. While Conen tries to smooth the waves with a renovation approach, Weissengruber has massive banking liabilities, especially through loans for investments in new production facilities. The bankruptcy of both companies throws a bright light on the turbolent location of the furniture industry. A positive change could enable the maintenance of jobs and overcoming the financial difficulties, but the uncertainty remains high.