Next bankruptcy

Underwear manufacturer Palmers is insolvent

(Bild: APA/ROLAND SCHLAGER / APA / picturedesk.com)

The next bankruptcy of a traditional company: underwear manufacturer Palmers has now officially filed for insolvency. The aim now is to continue operations as part of a restructuring process.

"For a positive going concern forecast as of the end of January 2025, considerable liquid funds would have been necessary in the near future," the company wrote. Although an investor is reportedly currently being sought, none could be found quickly to participate in the financing. However, Palmers is confident that the current talks with investors can still be successfully concluded and that the company "can be put back on the road to success in the medium term" with a restructuring process.

Registration of employees with the AMS early warning system
As a "precautionary measure", the long-established company has already registered the dismissal of hundreds of employees with the AMS early warning system. In addition to the already announced reduction of 20 stores, no further locations are to be cut as part of the restructuring. Staff are also not expected to be cut for the time being. The GPA trade union announced on Thursday that employees' employment contracts are continuing as normal. On Friday and Monday, employees will be informed about further steps in online works meetings.

Loans worth millions will soon be due
Liabilities amount to around 51 million euros. In the middle of the current year, Palmers will also have to refinance loans worth millions. The company currently still has 113 of its own stores and 539 employees in Austria. In addition, there are 35 branches that are operated on a franchise basis and are not affected by the insolvency.