Dramatic news a month before Christmas: The car repair chain ATU is said to be on the verge of bankruptcy. Hundreds of workers have been affected and 420 jobs are at risk. The car accessories chain Forstinger recently encountered financial turbulence.
Black Monday for 420 ATU employees. Because now they have to worry about their jobs – just a few weeks before Christmas Eve. According to information on its website, the car repair chain has 25 branches in Austria. The company has already suffered heavy losses in recent years, but received support from the German parent company and the Mobivia group behind it.
Under pressure after cyber attack
However, things are not going so well with the German mother either. The company came under additional pressure after an alleged cyber attack in the spring. That is why well-founded rumors have now been confirmed that ATU is withdrawing from the red-white-red market. As has leaked, discussions have already been held with all landlords of the 25 ATU locations in recent weeks.
Feverish negotiations behind the scenes
It is not yet clear what this precarious situation actually means for the 420 employees. In any case, feverish negotiations are taking place behind the scenes to perhaps create a Christmas surprise, or save as many locations as possible.
A major competitor in the automotive industry has gone bankrupt for the third time this year: the car accessories chain Forstinger filed an application to initiate restructuring proceedings at the end of June.14 of the 87 branches had to be closed.
In September, creditors finally agreed to the restructuring plan: a quota of 20 percent was agreed.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
