On Thursday morning, fiber producer Lenzing reported that the market environment was still sluggish, and a few hours later a fashion company in Upper Austria slipped into bankruptcy. Egger Moden GmbH from Unterweißenbach has submitted an application for restructuring. The debts amount to 1.32 million euros.
“Fashion and costumes from a good house” is the slogan of Egger Moden GmbH, which operates branches in Unterweißenbach, Rohrbach and Unterweitersdorf. Since Thursday it has been unclear what will happen next with the family business. Because: The traditional retailer from the Mühlviertel, founded in 1884, filed for restructuring.
According to the creditor protection associations KSV 1870 and Creditreform, the debts amount to 1.326 million euros. This equates to a capital of 267,000 euros. Until the Corona pandemic, only positive annual results were achieved, but now the financial situation was too serious.
What are the reasons for bankruptcy? If we talk about the difficult economic and political situation since the start of the pandemic, purchasing and consumer behavior has changed, which in turn has led to sales losses. In addition, energy, rental and personnel costs increased.
Two branches suffer heavy losses
The stores in Unterweißenbach and Unterweitersdorf generate large losses that the Rohrbach location could not compensate. Egger Moden GmbH could not afford to close the two branches and insolvency proceedings were inevitable. Now the renovation should be successful. It is said that creditors will be offered a 20 percent quota.
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.
