The scandal-ridden mouth-nose and FFP2 protective mask manufacturer Hygiene Austria, based in Wiener Neudorf, has filed for bankruptcy. Reorganization proceedings without self-administration have been opened at the regional court in Wiener Neustadt for the 100 percent subsidiary of lingerie manufacturer Palmers, the creditor protection organization KSV1870 announced on Monday.
The relevant court ruling was made on Friday. The accounts receivable company Hygiene Austria LP GmbH was founded at the beginning of the Covid-19 pandemic in March 2020. The sole owner is Palmers Textil AG. “In 2021 and 2022, the company was the center of media attention,” the credit protection organization recalls. The FFP2 mask scandal involving Hygiene Austria and Palmers caused a stir.
The mask manufacturing company was originally founded in Austria as a joint venture between Lenzing and Palmers. To the outside world, Hygiene Austria presented itself as a company with products “made in Austria”, received company visits from high-profile political delegations and received extensive government contracts. It was later revealed that masks were being sold from China.
Accusation of “large-scale tax evasion”
Towards the end of the pandemic, the company was also rocked by a financial scandal – in the summer of 2022, the daily newspaper “Der Standard” reported on previously “not publicly known, serious allegations” regarding “continued tax evasion on a large scale using false or forged receipts”. Palmers is said to have evaded at least 693,000 euros in customs and import taxes when importing protective masks from China via Palmers Germany. Palmers and Hygiene Austria rejected the accusations.
In the insolvency proceedings, Hygiene Austria is now offering all unsecured creditors a payment quota of 20 percent, payable within two years after acceptance of the restructuring plan, the KSV said. For the time being, this is the legal minimum offer.
“The coming weeks will show whether the restructuring efforts can actually be sustained,” emphasizes creditor protector Brigitte Dostal of KSV1870. “The restructuring plan offer will also have to pass strict checks so that the submitted payment proposal will be accepted by creditors,” she added.
Source: Krone
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