The Austrian children’s shoe brand Richter is insolvent.
The children’s shoe company Ferdinand Richter GmbH & CO KG filed for bankruptcy at the Regional Court for Civil Law Matters in Graz on Monday, the Alpine Creditors Association announced. The company could no longer meet its current payment obligations and restructuring proceedings without self-administration were initiated. 20 employees and around 120 creditors are affected.
The traditional manufacturer of children’s shoes, founded in 1893, is one of the oldest in Europe. Due to the consequences of the corona pandemic and the associated lockdowns, an unexpected need for financing became necessary, which, however, was not the reason for the bankruptcy. Rather, this was caused by possible reclaims of Corona funds.
Repayment of bridging financing leads to problems
During the pandemic, the company’s financing was initially covered with the help of bridging financing, shareholder support and government funding, but uncertainties regarding a claim for repayment in connection with compensation for losses ultimately led to financial problems. The company was recently confronted with a potential claim for repayment of around 1.9 million euros. The renegotiated working capital line would not have been sufficient for this amount, so the renegotiated working capital line would not have been sufficient for this, so the new loan agreement was ultimately not concluded.
According to the Alpine Creditors Association, Richter currently has assets of around 920,000 euros, while debts amount to around 7.91 million euros. Around 550,000 euros are owed to the suppliers.
Continuation of the company intended
The management of the company in Graz aims to continue the company. The first financing discussions with shareholders are already underway, but the search for investors and strategic partners is still ongoing. The aim is to achieve appropriate liquidity for the company. It is still unclear which restructuring measures are necessary.
There are currently 20 employees working for judges, four of whom work in Germany. In addition, an independent sales representative works on behalf of the company in Germany.
The company is also the sole shareholder of Jela Schuhe GmbH in Munich and Richter Slovakia sro, which is responsible for logistics, sales and parts of the production of the shoes.