Palmers Textil AG reports bankruptcy.
The Austrian laundry provider Palmers Textil AG has submitted an application to the State Court of Wiener Neustadt to initiate a renovation process. The goal is to continue the company’s sustainable continuation on Thursday.
Palmers could not ensure financing
This step follows after it became known that the company is looking for investor: inside. Contrary to expectations, however, it was not possible to ensure financing within a short time. Therefore, the corporate management was forced to submit the bankruptcy application because the necessary capital inflows did not take place in good time. For a positive continued existence for the end of January 2025, considerable liquid funds would have been required.
As a precaution, Palmers had submitted a report to the early warning system of the Austrian labor market service (AMS) and is now in close coordination with the interests of the employees: inside. The company is working hard to pay the outstanding salaries of the more than 500 employees promptly through the insolvency fee fund.
The liabilities to be taken into account in the renovation plan amount to around 51 million euros. Nevertheless, the corporate management is confident that Palmers can be brought back to success as part of the renovation process and that ongoing investor talks can be successfully completed. Measures to reduce costs, increasing profitability, digitization and repositioning of the brand that initiated last year are to be continued consistently.
In the 2023/24 financial year, Palmers slipped even deeper into the red. The net loss was 14.7 million euros – more than three times as high as in the previous year. The shortfall resulted from an operational loss of 6.1 million euros as well as depreciation and value adjustments of 8.6 million euros. The latter emerged, among other things, by hiring the activities in Eastern Europe.