Insolvency drama: Traditional company Weissengruber is facing restart!

Insolvency drama: Traditional company Weissengruber is facing restart!

In an alarming development, the family company Weissengruber Möbelproduktion e.U. from Ried in the Riedmark a renovation process without self -administration requested from the Linz regional court. The entrepreneur Klaus Weissengruber, who founded the company in 1965, is faced with enormous financial difficulties. As reported by the Alpine Officer Association (AKV), bankruptcy affects 72 creditors and amounts to liabilities of around 7.25 million euros. A large part of these debts results from high loan rates as well as rapidly increased material, energy and wage costs. Furthermore, the company is fighting with significant drops in sales in furniture retailers, which further tightens the Situation.

The business activity of Weissengruber initially included furniture production, especially for private customers before the company expanded to the hotel and catering sector and performed as a supplier for industrial kitchen fronts and table productions. There are currently still 56 employees at the company, but the future of jobs is on the brink.

record insolvencies in Austria

The bankruptcy of Weissengruber reflects the alarming overall situation in the Austrian economy, as the current reports of the AKV show. In 2024, 4,156 company insolvencies were opened, a historical maximum value that exceeds the crisis rises of the 2007/2008 financial crisis. This bankruptcy rate is the result of over two years of recession, rising unemployment and falling economic output. The liabilities also reached a record value of 19.5 billion euros, which indicates that the economic framework conditions remain shocking for many companies. Many companies are increasingly under pressure to cope with the increased costs and reserved consumption, which drastically affects competitiveness. According to the AKV, the aim is to stabilize Weissengruber with a renovation rate of 20 percent within two years.