The Zillertal wire rope hoist manufacturer GA Actuation Systems GmbH filed for bankruptcy at the regional court in Innsbruck on Wednesday. According to information from credit protection associations, 73 employees and 250 creditors were affected. The liabilities amount to 10.5 million euros.
The company used to be part of Germany’s AL-KO Group, it said. The reasons for insolvency were cited as “significant sales losses” and “provisions for employee benefits (pensions) in the millions”.
“Huge drop in turnover”
GA Actuation Systems GmbH produces handbrake levers, foot pedal assemblies and quick-mounting systems for cable pullers, which are mainly used in the automotive industry. According to credit protection association KSV1870, there was a “huge drop in sales” between 2017 and 2019. “While there were about 30 million euros in sales in 2017, it was slightly more than 21 million euros in 2019,” it says.
No salaries paid
The draft annual accounts show a further reduction to approximately 13.8 million euros and a net loss for the year in the millions. In addition, the company would have stopped paying employees “a long time”.
The future of the company is still open. It is unclear whether restructuring the company is an option.
Source: Krone
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