Reich-Austria GmbH goes bust January, 15, 2010
Machinery producer Reich-Austria GmbH and its parent holding group Holz-Her GmbH have started bankruptcy proceedings, it was announced today (Thurs).
The Alpine Land Creditors Association (AKV) said the firms based in Voitsberg, Styria, had debts of around 37 million Euros and more than 800 creditors.
AKV said the proceedings would affect 260 of 290 employees in Austria and 90 in Germany.
Reich-Austria, which started in 1914, has suffered a massive drop in business because of the recession and a 50 per cent fall in turnover year on year to 50 million Euros in 2009 led to banks slashing its credit lines, AKV said.
Reich-Austria specialises in high-value machines for the wood-working industry.
Another Styrian firm, BM-Battery Machines GmbH based in Ebersdorf, entered bankruptcy proceedings on the back of a lack of own capital just days ago.
In what was the first big Austrian bankruptcy in 2010 with the company’s debts reported at 6.4 million Euros.
Figures from the Credit Protection Association of 1870 (KSV) show number of business bankruptcies had soared in the first three quarters of 2009 by 10.4 per cent year on year to 5,190.
Informational resources: Austrian Times | 
