It was struck for a construction company from Linz. The 21-year-old company has now gone bankrupt, with unsecured debts of 21.1 million euros. Not only 480 creditors are affected by the bankruptcy, but also 74 employees.
The Linz-based construction company WRS Energie- und Baumanagement GmbH filed for bankruptcy yesterday, Thursday, at the regional court in Linz. The company’s purpose is the planning and implementation of construction projects, as well as projects in the fields of energy and installation technology in the market segments of public/municipal customers, trade, industry and tourism.
“Renovation not planned”
Around 490 creditors and 74 employees at the head office in Linz and the three branches in Vienna, Graz and Innsbruck are affected by the bankruptcy. The debts amount to around 21.1 million euros. “There are no plans to restructure the company. The company will therefore be liquidated by the administrator to be appointed. However, the aim is to continue processing ongoing projects in the short term,” says Stephan Mazal of Creditreform.
Difficult market environment
The causes of the bankruptcy were the difficult market climate in the construction sector, strong price increases that could not be fully passed on to customers and this resulted in a tense liquidity situation. Non-payment by a number of important customers made the road to the bankruptcy court inevitable.
Since WRS was founded in Linz 21 years ago, 250 projects with a total volume of 410 million euros have been completed.
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.
