Restructuring planned

Well-known car dealer slides into bankruptcy

New and used cars have become much more expensive in some cases due to energy price increases and supply chain problems - buyers are cautious. This is now affecting a car dealer from Grieskirchen.(Bild: Arthur Kattowitz - stock.adobe.com)

Another insolvency in Upper Austria - this time in the car industry. Seifried United Auto GmbH is a long-established dealership whose boss is a leading functionary in the Chamber of Commerce. In addition to a failed expansion, the decline in e-car sales is said to be partly to blame for the difficulties. The business is to be continued.

The Kreditschutzverband 1870 reported on Tuesday evening that Seifried United Auto GmbH from Grieskirchen has applied for restructuring proceedings at the regional court in Wels. The managing director is Adolf Seifried, the committee chairman of the car trade division of the Upper Austrian Chamber of Commerce.

Nine employees - five blue-collar workers and four white-collar workers - are affected by the bankruptcy. 50 creditors have claims amounting to around 3.2 million euros.

20 percent offered
According to KSV 1870, this is offset by around 1.4 million euros in assets. A two-year restructuring plan with a quota of 20 percent is being offered to creditors. According to the application, the company - a new and used car dealership and workshop - is to be continued. 

Declining interest in electric cars
According to information from the company boss, the main reason for the insolvency was an expensive expansion to Wels, which has since been closed. According to the insolvency application, the decline in the initially high demand for electric cars is also a reason for the company's financial difficulties. Increased wage and energy costs are also cited.

"According to the insolvency application, the 20 percent quota is to be generated from the continuation of the business," explains Petra Wögerbauer, head of the KSV 1870 office in Linz.