60 years after the company was founded, a carpentry workshop in Upper Austria is having to endure a terrible economic crisis: Restructuring proceedings have been initiated for Weissengruber Möbelproduktion eU from Ried in der Riedmark. Debt level: approximately 2.8 million euros.
The huge increase in interest rates, high wage and energy costs and significant drops in turnover – that is the mix that became toxic for Weissengruber Möbelprodukt eU and ultimately made the road to the insolvency court inevitable.
Debts of 2.8 million euros
A restructuring procedure has been initiated for the family business from Ried in der Riedmark (Upper Austria), which is managed by the second generation and is celebrating its 60th anniversary this year. According to the Credit Protection Association from 1870, the debts amount to around 2.8 million euros. This compares to a capital of 517,000 euros.
What particularly affected the company with 55 employees was an investment from 2022. At that time, a new hall was built and new machines were also purchased. The investment was financed with external resources.
Business must continue
What should happen next? Owner Klaus Weissengruber plans to continue and restructure the company and offers creditors a 20 percent quota. “The successful implementation of the restructuring plan and the approval of the creditors form the basis for the survival of the traditional company,” says Petra Wögerbauer of KSV1870.
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.
