Insolvency filed

Palmers bankruptcy affects 16 stores in Salzburg

The underwear manufacturer slipped into bankruptcy.(Bild: APA/ROLAND SCHLAGER / APA / picturedesk.com)

The underwear company Palmers, founded in 1914, has now filed for insolvency. This also affects around 30 employees in Salzburg. They were already registered with the labor market service around a week and a half ago.

So far, no investor has apparently been found. As reported by credit protection associations, the well-known underwear manufacturer has now filed for insolvency at the Wiener Neustadt regional court. According to Creditreform, the state-sponsored creditor protection association, the company is seeking to open restructuring proceedings with self-administration.

Around a week and a half ago, the employees of the 113 branches were given advance notice at the labor market service. In Salzburg, the bankruptcy affects 16 branches, six of which are located in the provincial capital. The GPA trade union is in contact with the Palmers works council in order to protect the rights of the predominantly female employees.

Salaries are open
According to the company, the reasons for the insolvency are strong competition in a saturated market, rising interest rates and inflation and the associated loss of purchasing power. The bankruptcy affects 490 creditors and 515 employees. Salaries have been outstanding since January. Liabilities amount to around EUR 69.1 million and assets to around EUR 11.6 million. The company is to continue as a going concern. The creditors are being offered a quota of 30%.