Millions in debt

Salaries not paid: Palmers on the brink of bankruptcy?

(Bild: Weingartner-Foto / picturedesk.com)

Traditional underwear manufacturer Palmers could be the next victim of the wave of bankruptcies: According to media reports, the group, which has been struggling for some time, has been unable to pay current employee salaries. An announcement announced for Monday does not bode well ...

The company, which has been in the red for some time, has been looking for investors. In the previous year, Palmers recorded a loss of 14.7 million euros, while turnover fell from 71.5 million to 66.6 million euros. Equity fell from around seven million euros to minus 2.6 million euros. In addition, a multi-million euro Covid loan is due in June.

Store closures already fixed
Palmers had already decided last year to close around 20 of its approximately 120 stores in Austria by 2026. A crowd-investing campaign was also launched to raise 500,000 euros from small investors via the Rockets platform. According to the company, this "did not reach the contractually stipulated funding threshold, which is why the investment did not materialize and all funds were repaid".

500 employees affected
No one from the management wanted to comment to the Salzburger Nachrichten on Friday. There is to be a decisive meeting at the weekend, and the company will only make a public statement on Monday. Palmers currently employs around 500 people in Austria.