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The roots of Ferdinand Richter GmbH – better known as “Richter Shoes” – go back a long way: according to the company website, children’s shoes have been produced under the brand since 1893. In 2018, Richter celebrated the company’s 125th anniversary. The registered office is still located at the former production site in Pasching. However, warehouse and production were outsourced to other European countries and Asia years ago, and commercial management is now based in Graz.
The application to open restructuring proceedings has therefore been submitted to the Graz Regional Court for Civil Law Matters. The Alpine Creditors Association (AKV) and the Credit Protection Association of 1870 (KSV) announced this on Monday. The plan is to continue operating the company; the approximately 114 creditors will be offered a quota of 20 percent within two years. With regard to the causes of insolvency, the company points to the massive impact of the Covid crisis on the retail industry.
Reclaiming Covid funds?
However, the reason for the insolvency is different: the working capital line, which is limited until September 2023, was to be renewed and, according to the insolvency application, the corresponding loan negotiations were about to be concluded. Shortly beforehand, however, the company had been informed by the tax office that a subsequent review of the applications for loss compensation had revealed ambiguities regarding actual eligibility.
The company was then faced with a potential claim for repayment of around 1.9 million euros. The newly negotiated working capital line would not have been sufficient for this, so the loan agreement was not concluded due to the resulting uncertainties.
The liabilities amount to around 7.9 million euros, taking into account provisions for employee claims, possible liabilities as a result of possible contract terminations and COFAG’s potential claim for repayment. In contrast, assets of around 920,000 euros are low as a result of devaluations.
20 employees are affected by the insolvency, four of whom work in Germany. The children’s shoe manufacturer’s core sales markets, which include subsidiaries in Germany and Slovakia, are Germany, Austria, Switzerland and Hungary.
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