A major furniture manufacturer in Upper Austria has initiated restructuring proceedings due to mounting financial pressures. The application, filed at the Linz Regional Court, affects 56 employees and 72 creditors. The move has been confirmed by Iris Scharitzer of the Austrian Creditreform Association, marking a significant moment in the regional furniture industry.
Photo: Weissengruber Möbelproduktion.
Weissengruber Möbelproduktion eU, based in Ried in der Riedmark, is the company seeking to restructure. Established in August 1965 as a family business, the firm initially focused on bespoke interior design for private clients. Over the years, it expanded to provide furnishings for hotels, restaurants, and commercial properties, becoming renowned for its custom-made solutions tailored to unique spaces.
The financial troubles stem from various challenges, including pandemic-related declines in revenue, rising costs of wages, materials, and energy, as well as high-interest burdens. A significant drop in sales towards the end of 2023 exacerbated the situation. The company has clarified it was not a supplier for the insolvent Kika/Leiner chain, distancing itself from associations with that bankruptcy.
According to the Austrian Creditreform Association, Weissengruber Möbelproduktion's liabilities amount to €7.248 million at liquidation value. The KSV1870 estimates liabilities at €2.8 million for continued operations, with free assets valued at €517,000.
Plans for restructuring are already in place, with Petra Wögerbauer of KSV1870 confirming that creditors have been offered a 20% quota under the proposed plan. This approach reflects the company's determination to overcome its challenges and continue as a key player in the furniture manufacturing sector.
The case highlights the ongoing struggles businesses face in adapting to economic fluctuations, rising operational costs, and market shifts in the wake of the pandemic.
Source: www.kurier.at