Rescue of Palmers Delayed

The vote on the restructuring plan has been postponed by two weeks to May 20, as the creditor protectors announced after a court hearing in Wiener Neustadt. By then, it should be clear who the new financiers will be. Palmers is burdened with debts of almost 80 million euros.

Foreign Investor to Rescue Lingerie Retailer Palmers

Palmers AG pointed out on Tuesday that a letter of intent had been signed between the current Palmers owners and a strategic investor group around a listed textile company. By May 20, the takeover should be finalized and creditors should vote on the restructuring plan. For AKV creditor protector Cornelia Wesenauer, the entry is not certain as long as the investor has not been officially presented and the contract signed, as she told APA.

80 Million Euros in Debt: Self-Administration Withdrawn

Palmers needs fresh money to be able to repay at least part of its debts. It was previously planned that creditors would receive 30 percent of their claims. However, Palmers withdrew self-administration in the restructuring process in court on Tuesday. The minimum quota thus drops to 20 percent. So far, claims of 76.8 million euros have been registered, but only 17 million euros have been recognized for the time being.

The traditional company, founded in Innsbruck in 1914, ran out of money this year and had to file for bankruptcy in February. Since then, 47 branches have been closed, over a hundred employees and several franchise contracts have been terminated. According to the company, 70 own branches and 46 operated by franchise partners are still open. The workforce of Palmers Textil AG has fallen to under 400 employees.

(APA/Red)

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