Salzburg Schokolade

History

2021: Bankruptcy Notice

On November 29, 2021, chocolate candy manufacturer Salzburg Schokolade filed for bankruptcy. The statement was unexpected, since the manufacturer had not previously reported that it was experiencing any financial difficulties.

This became known after the company said it could not pay employees November salaries and Christmas bonuses.

Chocolate candy maker Salzburg Schokolade declares bankruptcy

On November 30, an insolvency case was opened in the regional court of Salzburg. The company suffered significant losses as a result of the pandemic. The closure of stores, a sharp decrease in the number of tourists, as well as celebrations of birthdays and weddings - led to a drop in revenue.

The manufacturer has liabilities of about €27.29 million ($30.9 million) at the liquidation value, of which unsecured ones amount to about €17.69 million ($20 million) and assets of about €23.35 million ($26.4 million), of which free assets amount to about €13.75 million ($15.5 million), according to the statement.

The press release says that among them are about 614 creditors and 140 injured employees. Local authorities promised to cover the salaries of employees.

The reasons for insolvency are primarily due to the loss of a large order in 2016 and a significant decrease in sales due to the COVID-19 pandemic in 2020. The forecast for the further existence of the company is initially negative, the press release says about filing for bankruptcy. - A wholly owned subsidiary of the debtor, Salzburg Schokolade CZ sro, located in the Czech Republic, Plan, has not yet suffered from the bankruptcy in question.

Bankruptcy hit Salzburg's business profile. Salzburg Schokolade was founded in the 19th century and since 1948 has produced Mozartkugel candy, which is a popular brand in Austria and Salzburg, which attracts a lot of attention to the future heritage of the brand.^[1]

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