Chaaya Shoes GmbH is insolvent.
Bankruptcy proceedings for the Austrian shoe supplier were opened at the competent regional court in Wels, the creditor protection organization KSV1870 announced on Tuesday. The company has submitted its own application for opening and does not provide for any self-administration. Attorney Johannes Hofmann from Wels was appointed for the administration.
The reason for filing for bankruptcy is “loss of margins and redemptions due to defective production in Turkey” and the consequences of the corona-related closures, according to the statement. The distribution of another brand with the name “Flufie” did not lead to the desired sales either. In the meantime, due to a lack of liquidity, production in Turkey can no longer be pre-financed and Flufie brand products can no longer be purchased.
Managing Director Markus Lehfellner is behind the company from Thalheim near Wels, in Upper Austria. He started the company with two friends in 2015, according to the Chaaya website. The brand works with retail partners in Germany. Austria and Switzerland together. Chaaya does not operate its own online shop or stores.