Insolvency shock: Goldwelt jewelers close nine branches in Austria!

Insolvency shock: Goldwelt jewelers close nine branches in Austria!

The Goldwelt jewelry and watchmaker chain is facing a drastic turn: nine out of a total of 13 branches are closed. This decision follows the bankruptcy application that the company made at the Linz Regional Court in mid -January. As reported by orf.at , the responsible people assume that a sale in the remaining four shops that are located at frequented locations in Pasching near Linz, Klagenfurt, Innsbruck and Salzburg will bring higher proceeds to the insolvency believers than a complete Liquidation. Around 60 employees and around 43 creditors are affected by this development.

causes of bankruptcy and possible renovation

The causes of bankruptcy are diverse: sales declines during corona pandemic, rising rental and energy prices as well as high personnel costs led to this critical Situation. Failure in the negotiations with a potential investor reinforced the crisis, such as Kleine Zeitung . A renovation plan provides for the creditors to offer a repayment of 20 percent within two years, which, however, depends heavily on the previous developments.

Goldwelt checks the talks with investors in parallel to possibly find a way out of the precarious situation. With this situation, the jewelry scene in Austria is put to the test, while the after -effects of pandemic are still noticeable and companies are immense.