Restructuring Plan for Insolvent Salzburg Traditional Costume Manufacturer Gössl Rejected

According to the creditor protection association Creditreform, the restructuring plan submitted on Monday for the production company "Gössl GmbH," which was closed in February, did not receive the legally required majority of creditors. The company had offered a quota of 20 percent in four installments and now plans to present an improvement within 14 days by May 26.

Bargain hunters must wait after rejection of restructuring plan from traditional costume manufacturer Gössl

In total, 265 creditors have registered claims amounting to approximately 8.7 million euros, of which around 7.1 million euros were recognized as legitimately existing. According to the insolvency administrator's statement, creditors would receive a quota between 13 and 17 percent in the event of a liquidation.

With the rejection of the restructuring plan, it also remains unclear how the auction of 20,000 dirndl dresses and leather trousers, which has already partially begun, will proceed. The restructuring process led to a halt in liquidation. Gössl would prefer to sell the goods - which are part of the production company's inventory - not through an online auction, but via its own channels to achieve higher prices.

Unlike today, in mid-March, the creditors of the also insolvent Gössl trading company "Gössl Gwand GmbH" agreed to the submitted restructuring plan and a 20 percent quota. The company intends to consolidate all business areas into the "Gössl Gwand GmbH." This will also involve closing some branches. However, the majority of the stores distributed across Austria and Bavaria are to be continued, according to the management in March.

(APA/Red)

This article has been automatically translated, read the original article here.