After the chain's bankruptcy:

Palmers coins almost worthless, taxpayers bleed

The famous green coins are suddenly no longer worth what they say on the tin.(Bild: Krone KREATIV/Palmers / Gregor Hofbauer, Palmers)

The insolvency of the Palmers clothing chain has had dire consequences for thousands of Austrians: The famous green voucher coins are now suddenly worth almost nothing! But that's not all: the bankruptcy of the traditional company will also cost taxpayers dearly - to the tune of more than ten million euros!

"Vouchers can no longer be redeemed until further notice," Palmers announces. At least during the renovation phase. Although there are plans to accept the coins again after a restart, it remains to be seen whether this is even legally possible.

Kirstin Grüblinger, consumer advocate at the Chamber of Labor, explains: "Vouchers - and the coins are nothing else - are a securitized claim against a company. If this company becomes insolvent, as in the case of bankruptcy, it may neither favor nor disadvantage the voucher holders by law. It can be assumed that vouchers will no longer be redeemed."

What to do with the almost worthless coins?
Grüblinger advises those affected: "You can only register the vouchers as an insolvency claim." But be careful: the registration costs 25 euros - and the effort is often not worth it. For example, if you have ten Palmers coins worth ten euros each, i.e. a total of 100 euros, you would only receive 30 euros at the 30 percent rate offered. If you deduct the 25 euros for registering the claim, you are left with just five euros. And that's only if the major creditors such as banks accept the rate.

AK consumer protector Kirstin Grüblinger: "You always bear a certain degree of insolvency risk with a voucher."(Bild: AK Wien Lisi Specht)

"Vouchers are a pretty stupid thing in the event of insolvency - whether in coin form or in paper form," says Grüblinger. Her tip: "We advise you to redeem vouchers as soon as possible, because a voucher always carries a certain degree of insolvency risk."

If you want to register your claims, you can find the form at justizonline.gv.at. This must then be sent by post to the Wiener Neustadt regional court.

Taxpayers have to pay!
But it's not just the voucher holders who are losing money as a result of the Palmers bankruptcy. Taxpayers are also being asked to pay. The reason: of the liabilities amounting to around 51 million euros, 14.4 million euros are Cofag loans, for which the state has to step in in the event of a default. With a ratio of 30 percent, the Republic is left with a whopping 10.08 million euros!

The insolvency of Palmers is therefore not only a shock for customers, but also an expensive disaster for taxpayers. And the green coins? Above all, they are now just mementos of better times.