Palmers in Salzburg: Application for bankruptcy presents 16 branches with a challenge!

Palmers in Salzburg: Application for bankruptcy presents 16 branches with a challenge!

The Austrian clothing manufacturer Palmers Textil AG announced bankruptcy on February 13, 2025 and submitted a renovation process with self -administration at the Wiener Neustadt regional court. The company's liabilities amount to around 51.2 million euros. This renowned company, which is known for its laundry products in Austria, employs around 515 employees, of whom over 500 are directly affected by the bankruptcy. The financial difficulties are due to inadequate capital inflows, intensive competition on the market, rising interest rates and inflation, which led to a drop in shopping among customers, as the Austrian press agency (APA) reports.

currently Palmers 113 has its own branches, including 16 in Salzburg, and plans to reduce the number of branches from originally 120 to 100. Talks with potential investors are still running, but so far nobody has been gained to finance. However, the management is optimistic that ongoing negotiations will bring a positive result in order to bring the company to a successful course. Another important point is the delay in paying salary: since January, the wages of employees have been pending, which continues to complicate the situation. However, Palmers is in contact with the employee representatives to pay the outstanding salaries over the insolvency fee fund as quickly as possible, according to the company itself.

renovation plans and financial framework conditions

in the 2023/24 financial year, Palmers reported a loss of 14.7 million euros, a tripling compared to the previous year. The challenges also include high loans that are due in June 2025. Palmers offers a repayment of 30 percent of the claims within two years for the creditors who make up a total of around 500 people. The restructuring and the search for new investors are central elements of the renovation plan. This strategic approach should enable the company to overcome the financial problems and thus offer its existing employees a perspective. The conversations about a potential investor are still of great relevance in order to ensure the survival of the company and possibly not have to reduce the number of branches, such as