Open proceedings – Mozartkugel bankruptcy due to the Corona crisis

Confectionery manufacturer Salzburg Schokolade suffered “considerable losses” due to the Corona crisis – company manufactures Mirabell Mozartkugeln for the US group Mondelez – continued existence open

The bankruptcy proceedings against the confectionery manufacturer Salzburg Schokolade, based in Grödig (Flachgau), opened on Tuesday at the Salzburg Regional Court. According to KSV1870, around 140 employees and 614 creditors are affected. According to the company, the causes of the major insolvency are the loss of a major order in 2016 and a significant decline in sales from 2020 due to the corona crisis. It is unclear whether the company can continue. As KSV1870 reported, the liabilities should amount to 27.29 million euros (liquidation value) according to initial information, on the assets side would be 23.35 million euros. The prognosis for the continued existence of the company is initially negative. The restructuring of the company will still have to be examined separately. A subsidiary plant in the Czech Republic that specializes in the packaging of confectionery and food is not affected by the bankruptcy. Although profits have been made in recent years, the company was hard hit by the corona pandemic from 2020, wrote Managing Director Christian Schügerl on Monday in an address to employees and business partners. Due to the massive decline in tourists, events and occasions such as birthday and wedding celebrations, the demand for sweets from Salzburg Schokolade has fallen – which has led to a significant decline in sales. In addition, confectionery shops in Vienna and Salzburg have been closed for weeks due to a lack of tourists. The decline in sales from the previous year could only be partially compensated for in the new financial year. Despite new customers in the export business and the state Corona aid, as in the previous year, a considerable loss will be made again this year. “The current lockdown and significant increases in the cost of raw materials, energy, wages, logistics costs and packaging materials were further reasons,” continues Schügerl. The employees cannot be transferred the November wages and salaries and the Christmas bonus. The company referred to the insolvency remuneration fund, which secured the payments, and advised employees to contact the Chamber of Labor (AK). The Salzburg AK President Peter Eder promised support to the employees concerned. “We want to do everything possible so that people don’t have to worry financially, at least over Christmas.” Salzburg Schokolade is not only known for sweets for end consumers – for example, its brands Bobby Schokoriegel, “Maria Theresia” -Taler and Salzburg Confisérie . The long-established company also produces the “Real Salzburg Mozartkugel” from Mirabell exclusively for the US company Mondelez. The company also supplies bulk consumers such as bakeries and confectioners under the “nordpol” brand with semi-finished products such as nougat, marzipan, couvertures, waffles and glazes. The company was founded in the city of Salzburg in 1897 under the name of Rajsigl confectionery factory and moved entirely to Grödig in 1956. After several changes of ownership, the majority of the shares have belonged to Philipp Harmer Beteiligungs-GmbH since 2014, with managing director Christian Schügerl holding a small part of the company. According to the Wirtschaftscompass, sales for 2019 were EUR 28.72 million. Numbers for the first Corona year 2020 were not known.
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