Since insolvency proceedings were opened at motorcycle manufacturer KTM, subsequent bankruptcies were expected – now there is another one. Avocodo GmbH, part of the Pierer Group since the end of 2018, has been officially bankrupt since Tuesday, January 7. About 125 employees are affected. A restructuring procedure has been initiated and the business will continue.
The austerity and restructuring measures within the group surrounding the bankrupt motorcycle manufacturer KTM claimed their next victim on Tuesday: Avocodo GmbH from Linz is bankrupt. The Austrian association Creditreform reports that non-self-management restructuring proceedings have been opened at the Linz Regional Court over the company, which provides comprehensive software services to KTM AG, KTM Forschungs & Entwicklung GmbH and Pierer E-Commerce GmbH.
Since the end of 2018, the majority stake has been in the hands of the Pierer Group
At the end of 2018, the Pierer Group acquired 70 percent of Avocodo, and Pierer Mobility AG now owns 100 percent of the Linz-based company, which employs 125 people. The reasons for the bankruptcy are the outstanding claims of the most important customers KTM AG and KTM Forschungs & Entwicklung GmbH, which are no longer paid or are only paid to a very limited extent. The debts amount to approximately 6.8 million euros. Avocodo GmbH is continued.
Although the fear of subsequent bankruptcies was also supported by facts during the reporting meeting on December 20 at the regional court in Ried im Innkreis, things have so far remained relatively quiet about the companies directly linked to KTM. With one exception: the bankruptcy proceedings against Vöcklabrucker Metallgiesserei GmbH, VMG Metall for short, had already been opened on December 13. The former family business is a 100 percent subsidiary of KTM Components GmbH and was no longer able to pay wages because the payments initially promised by KTM Components were not made.
A buyer is being sought for VMG Metall
A heavy blow just days before Christmas, which has already cost some of the 134 VMG Metall employees their jobs. The curator has already closed several parts of the company and is now looking for a buyer for the company that was wiped out by the mega-bankruptcy.
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.
