Company has no money – traditional company Schneiders has to close

Date:

The factory closure follows two weeks after the opening of the bankruptcy. According to the clothing manufacturer, the reason is the total failure of the production sites in Ukraine. About 100 employees are affected.

Two weeks after the opening of insolvency proceedings, the long-established Salzburg company Schneiders Clothing is now coming to an end: The Salzburg regional court approved the closure of the company on Monday, the credit protection association of 1870 announced on Tuesday. About 100 employees are affected. According to the broadcast, it is not possible to continue the business.

There is no money for further production
The company lacks the money for further production and thus for survival. A partial continuation or operation of individual business units was no longer possible.

Declining sales partly due to the pandemic
On May 9, a restructuring procedure without personal responsibility was opened. The intention was to continue and rehabilitate operations with a clean-up plan that provided for a quota of 20 percent within two years. According to the bankruptcy filing, the company has already registered a drop in sales due to the Covid pandemic. With the outbreak of the Ukraine war, there was a total failure of the production sites in Ukraine. China’s strict Covid measures also led to a drop in contract sewing capacity. Added to this was the rise in transport, raw material and energy costs.

According to KSV, the liabilities at the time of opening the bankruptcy amounted to EUR 13.4 million book value or EUR 16.7 million liquidation value. On the credit side there were EUR 15.9 million (book value) and EUR 2.67 million (liquidation value). The bankruptcy did not have to be opened because of over-indebtedness, but because of the inability to pay, Aliki Bellou, KSV1870’s bankruptcy and country manager, told the APA at the time.

A branch in Vienna was also hit
Schneiders manufactured women’s and men’s clothing in the “Luxury Lifestyle” segment, with production taking place in outsourced sewing workshops. The head office and three branches are in Salzburg and Scheiders has a branch in Vienna. The subsidiaries have branches in Bernau am Chiemsee and a showroom in New York. Schneiders is the 100 percent owner of Amadeus Fashion, Habsburg clothing manufacturer, Schneiders Clothing Freilassing and Schneiders Salzburg Inc. in New York City.

The company has been around for about 70 years. The former head of the company, Alfons Schneider, was also chairman of the Salzburg Industry Association for 16 years (until 2002).

Source: Krone

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