After the well-known Styrian fashion designer Lena Hoschek had to file for bankruptcy of her company, the restructuring plan was approved on Wednesday. The special kind of traditional costumes can most likely be continued.
The report received at the Vienna Commercial Court last October came as a shock to many: well-known fashion designer Lena Hoschek has filed for restructuring proceedings for her company. Ongoing supply issues and financial problems since the coronavirus pandemic had brought the trade in traditional dresses and ribbon skirts to a standstill.
The Graz resident was only 24 when she founded her company. And it grew quickly. Also internationally. Queen Máxima wears her fashion, just like Katy Perry, Sarah Jessica Parker and burlesque star Dita Von Teese. The war in Ukraine was the biggest turning point, “because there are so many spinning mills, weaving mills and linen growing areas,” Hoschek told “Krone Bunt” in the fall.
“In addition, due to the international crises and supply bottlenecks, a large number of producers from Asia have returned to Europe, putting pressure on our capacities. It was just problem solving. Sleepless nights, coffee, sweat and even tears. Collections were completed too late and were then only available for sale at full price for a short time. And I couldn’t pass on the enormous price increase on a 1:1 basis anyway,” Hoschek continues.
Operations will continue
Now the fashion designer can breathe a sigh of relief: the restructuring plan has been accepted. A total of 231 creditors have submitted claims amounting to approximately 5.5 million euros, of which approximately 5.4 million euros have been recognized by the curator, the credit protection associations KSV1870 and AKV report.
During the vote, creditors approved a restructuring plan with a rate of 21 percent. Seven percent is paid within fourteen days, with the remaining payments to be generated from the company’s continuing operations within two years.
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.
