In search of investors

Palmers employees to be able to keep their jobs

The lingerie retailer Palmers has filed for insolvency. 515 employees are affected.(Bild: APA/Helmut Fohringer)

The lingerie retailer Palmers filed for insolvency on Thursday. It has now been announced that, for the time being, no branches other than the 20 already announced are to be closed. There are also no plans for redundancies, according to reports.

As reported, the company had filed for redundancies with the Public Employment Service (AMS) at the beginning of February as a precautionary measure. Palmers has 515 employees in 113 stores. They have not been paid since January. The outstanding salaries are to be paid soon. "In Austria, this doesn't take months, but weeks," said Gerhard Weinhofer from Creditreform.

The lingerie retailer is currently looking for investors in order to push through restructuring proceedings under self-administration. "We are hearing from a Chinese and a Turkish investor," said Weinhofer. More details will be announced at the creditors' meeting at the beginning of March. The management will probably work together with the restructuring administrator Maria-Christina Nau.

Liabilities were stated in the insolvency application at 51 million euros, assets at 11.5 million euros. If the secured receivables are added, the liabilities amount to around 69 million euros.