The traditional Graz bakery Hubert Auer is bankrupt again after 2020. Although the company had managed to restructure itself, it is now no longer liquid. This time almost 50 employees have been affected.
In the event of bankruptcy, the debts amount to approximately 2.5 million euros, the credit protectors of KSV1870, AKV and Creditreform announced on Monday. The assets amount to less than 300,000 euros. A new restructuring plan will be concluded with approximately 60 creditors.
Raw material costs have exploded
The company cited the loss of branches with high premium margins as the reason for the renewed bankruptcy: several lease agreements expired in 2023. In addition, there were failed investments: significant investments were made in the renovation and expansion of existing and new branches. Inflation was given as the third reason: raw material costs increased by 40 to 50 percent and personnel costs increased by 20 percent in the past two financial years.
Production will be moved
The company plans to continue operations by implementing a reorganization concept. Branches with low contribution margins must be closed completely or partially. Production will be moved from the current location in Seiersberg to Gratkorn, which will result in significant cost savings.
The bakery chain was already bankrupt in 2020. The debts at the time amounted to almost 4 million euros, the assets 680,000 euros. Of the initial 77 employees, approximately 50 were still employed in 16 branches after the restructuring. Now only 14 branches and 44 employees remained.
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.
