Laundry business Palmer's faces compulsory liquidation.
Let's switch gears and talk about Palmers, a venerable Austrian clothing brand that's been around since 1915. Lately, they've been dealing with some rough times. You see, inflation's been wreaking havoc on their sales, leaving them struggling to pay their debts. In response, they've got to pull that ol' emergency brake and file for insolvency.
Palmers, with a staff of around 500 and a significant presence in Germany's market, isn't abandoning ship just yet. They're aiming to keep on keeping on and continue their operations. As for their German shops, they're planning to keep those open, too.
Now, if you're curious about just how deep in the red Palmers is, the Austrian "Standard" has you covered. According to their report, Palmers' debts total a hefty €51 million, which is impacting around 490 creditors. Creditors will get a chance to recoup some of their losses over the course of two years, with a 30% quota on the table.
Unfortunately, our sources don't provide much insight into why Palmers is having such a hard time. It might be linked to the challenging market conditions or consumer restraint we see so often these days. But without more specific info, it's hard to say for certain. Palmers' story serves as a reminder that even the most established brands can face stormy waters.
The Commission in Austria has been closely monitoring Palmers' financial situation due to their substantial debts and impact on creditors. The textile industry, including Palmers, has been particularly affected by the high inflation rates in the European market. In an effort to support struggling businesses like Palmers, the Austrian government is implementing credit reform policies.
