178 creditors

Bakery business slips into bankruptcy worth millions

Smaller rolls will probably be baked for the time being! The natural bakery Zagler (Zagler Brot GmbH) is insolvent. The main reason for this is said to have been the increase in personnel costs and the changed consumer behavior of customers. The company with its six branches in the Braunau district is to be continued.

The company Zagler Brot GmbH has applied to the regional court in Ried im Innkreis for the opening of restructuring proceedings with self-administration.

178 creditors and 66 employees affected
The bakery with six branches was founded in 2011. According to the debtor, the causes of insolvency are the increase in personnel costs and the fact that business segment development remained below expectations due to changes in consumer behavior. 178 creditors and 66 employees are affected. Liabilities amount to 1.77 million euros. 

Subdivisions to be closed
According to KSV 1870, the plan is to close individual divisions and continue the company on a smaller scale. The quota for the creditors is to be generated from continuing operations. There are also plans to revise the product range and focus on the reseller and market segments. "The restructuring administrator appointed by the insolvency court will examine whether the restructuring and continuation of the company as intended by the debtor is possible without further losses for the creditors," said Petra Wögerbauer from KSV1870.