Palmer's laundry brand confronts financial collapse, necessitating bankruptcy filing.
Valentine's Day usually boosts sales for clothing brands, but that's not the case for the venerable Austrian label Palmers. Thanks to inflation, they've been struggling recently with significant sales decreases. Now, they're hitting the emergency brake.
Palmers Textil AG, an Austrian textile manufacturer with a strong presence in the German market, has filed for insolvency. The brink of bankruptcy is attributed to a difficult market environment and customers tightening their wallets due to inflation. As reported by Creditreform's Peter Weinhofer, these challenges were simply too much for the brand to handle, eventually leading to this unfortunate step.
The fiscal year 2023/2024 wasn't kind to Palmers, with losses skyrocketing to 14.7 million euros, more than tripling from the previous year. Despite these challenges, the brand, which was founded in 1915 and employs around 500 people, is determined to keep going. This resolve extends to maintaining their 15 stores in the German core market.
The company's financial troubles have impacted a sizable group of 490 creditors. These creditors are being offered a 30% payout over a two-year period. According to Austrian news source, "Standard", Palmers' debts amount to a substantial 51 million euros.
In an effort to ensure the company's long-term survival and protect its employees' jobs, Palmers is actively seeking investors. They're in negotiations for a restructuring plan and have promised that the continuity of the business and jobs are their top priorities. However, though they're looking for an investor, they've stayed mum on any potential stake or the identity of the potential investor.
To keep thecompany afloat, Palmers is planning a capital increase if they secure an investor. While they haven't provided a timeline for this, they remain optimistic that with investor support, they can navigate these tough times and continue their storied history.
The economy's current challenges, including inflation, have negatively impacted Palmers, an Austrian textile manufacturer known for its strong German market presence. As a result, the company has filed for insolvency, citing a difficult market environment and tightening consumer wallets as contributing factors. Creditreform's Peter Weinhofer reported on these challenges, which were ultimately too much for Palmers to overcome.
