The bankruptcy of the Upper Austrian motorcycle manufacturer KTM has led to a new bankruptcy in Mattighofen. On Monday, bankruptcy proceedings were opened at the Ried Regional Court against RJ-Werkzeugbau GmbH. 15 employees are affected.
As the credit protection organization KSV 1870 announced, more than 50 percent of sales were lost due to the production standstill at KTM. According to KSV, the debts of the now bankrupt KTM supplier amount to 1.2 million euros. On the other hand, there is a capital of approximately 460,000 euros.
The Corona and Ukraine crises and the weakening German automotive supply industry also fueled the bankruptcy, as evidenced by the bankruptcy filing.
Other parts of the company are not insolvent
The family business was founded in 1996 and is active in the field of tool construction, machine construction and installation technology. The “RJ Group” also includes RJ-Vermietungs GmbH and RJ Metall processing- and constructions GmbH, which are, however, not affected by the insolvency proceedings.
Already other KTM bankruptcies followed
RJ-Werkzeugbau GmbH is the first supplier to drag KTM into bankruptcy, but not the first company to file for bankruptcy as a result of the motorcycle manufacturer’s difficulties. Companies affiliated with KTM had already gone bankrupt.
At the beginning of this year, a non-self-managed restructuring procedure was initiated through Avocodo GmbH – a software service provider and part of the Pierer Group since 2018. 126 employees are affected.
And in December, Vöcklabrucker Metallgiesserei GmbH, a 100 percent subsidiary of KTM Components GmbH, entered bankruptcy proceedings.
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.
