Salzburg-based clothing retailer Schneiders is closing after bankruptcy proceedings were opened earlier this month.
The Salzburg regional court approved the closure of the company on Monday with the consent of the Schneiders management, the creditor protection association KSV1870 announced on Tuesday after this became public knowledge. Due to a lack of liquidity, the production of the goods and thus the continuation of the company is not possible.
The company, founded in 1946, filed for bankruptcy with the competent court two weeks ago. The reason for the insolvency is the Corona-related decline in sales and the effects of the Ukraine war on the overall economic situation. In addition, there was a “sudden, comprehensive total failure” of the production sites in Ukraine, according to Schneiders.
At the time the application was submitted, Schneidersclothing Gesellschaft mbH was to be reorganized and continued. It is now clear that Schneiders cannot continue. The closure affects the main store as well as three other stores in Salzburg and one store in Vienna. There are also branches operated by subsidiaries in Bernau am Chiemsee and a showroom in New York. Schneiders employed around 104 people.
It was only in October 2020 that Schneiders opened its first monobrand store in the historic center of Salzburg, which was a step in the company’s growth course at the time. In this context, the company’s own online shop was also set up.