Million bankruptcy: Textile manufacturer Schneiders is insolvent

2023-05-08 13:01:00

A restructuring procedure without personal responsibility was opened at the Salzburg regional court on Monday, according to AKV and KSV1870 in broadcasts. According to AKV, the liabilities should amount to EUR 10.5 million, around 255 creditors are affected. The reasons given for the insolvency were the discontinuation of contract sewing in Ukraine and the strict Covid measures in China.

According to Aliki Bellou, the bankruptcy and country manager of KSV1870, Schneiders is currently insolvent, but not overindebted. According to her information, the liabilities amount to 13.4 million euros, which are offset by 15.9 million euros in assets, she said to the APA. Because of the inability to pay, however, the bankruptcy application had to be made.

The company manufactures women’s and men’s clothing in the “luxury lifestyle” sector, with production taking place in outsourced contract sewing shops. The head office and three branches are in Salzburg, and Scheiders has a branch in Vienna. The subsidiaries operate branches in Bernau am Chiemsee and a showroom in New York. Schneiders is the 100 percent owner of Amadeus Fashion, Habsburg clothing manufacturer, Schneiders Clothing Freilassing and Schneiders Salzburg Inc. in New York.

According to the bankruptcy application, the company has already recorded a decline in sales as a result of the Covid pandemic. With the beginning of the Ukraine war, there was a total failure of the production sites in the Ukraine. The strict Covid measures in China also led to a decline in contract sewing capacities. Added to this is the increase in transport, raw material and energy costs.

Schneiders intends to continue operations and rehabilitate through a remediation plan that currently envisages a rate of 20 percent within two years. The company employs around 100 people.