The Austrian subsidiary of the retail chain Tally Weijl is in financial difficulties. On Thursday, the creditor protection association KSV1870 announced that reorganization proceedings without self-administration had been opened over the assets of Tally Weijl Austria GmbH.
According to the association, the clothing retailer justified the step by saying that the shop rents had increased to an “unacceptable level” against the background of ongoing sales losses. Negotiations with the landlords have “so far been unsuccessful”.
The aim of the proceedings that have now been initiated is therefore to continue the company and to relieve it of its debts through a restructuring plan. This stipulates that the insolvency creditors should receive “a quota of 20 percent of their claims, payable within 24 months after acceptance, but not before the reorganization plan has been legally confirmed”, explained the KSV 1870.
Tally Weijl Austria currently employs 53 people and operates nine of its own branches and an online shop in Austria. The company also works with eleven franchise partners who operate other brand stores in the country.