A luxury furniture supplier has become the latest casualty in Austria's growing wave of insolvencies, filing for bankruptcy on 14 February. The company, based in Kleinriedenthal, Hollabrunn district, has accumulated liabilities amounting to €2.8 million, according to insolvency administrator Peter Stromberger of Credit Protection Association 1870 (KSV1870).
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The firm, Schmircher GmbH, was originally founded in 1948 as a small joinery business before expanding into luxury furnishings and international markets. It supplied high-end furniture for clients in Moscow, luxurious villas, and parts of the Excalibur City shopping and amusement park in the Czech Republic. Despite its growth, financial difficulties persisted, with the company suffering a €425,000 loss in 2020. Although it returned to profitability in 2021 and 2022, outstanding debts remained unresolved.
A planned transition was announced in January when the firm stated that its Hollabrunn furniture store would be converted into a hotel. However, the company's financial instability has led to its collapse, affecting 60 creditors and eight employees. KSV1870 noted that the court-appointed insolvency administrator will now assess whether the business can continue under bankruptcy proceedings.
Creditors have until 2 April to submit claims, with a reporting and audit meeting scheduled for 16 April. The firm's remaining debts are expected to be partially offset through asset sales. This case highlights the broader financial struggles faced by businesses in Austria, as insolvencies in the country average 18 per day.
Source: www.heute.at