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The fashion company, which has existed since 1972, announced on Thursday that an application to initiate restructuring proceedings without self-administration had been submitted to the Vienna Commercial Court. Creditors are offered a quota of 20 percent.
Jones managing director Gabor Rose explains the bankruptcy as follows: “Negative effects from the corona pandemic and the associated changes in customer behavior as well as the recently sharply increasing cost structure, which are putting a massive strain on all stationary retail, have led to this difficult situation, which can only be solved through relief can be dealt with through legal restructuring proceedings. As an Austrian family business, we were unable to escape these developments despite all our efforts.”
Specifically, in the restructuring application, the management cites, on the one hand, inflation-related additional costs in the areas of energy, salaries and rents amounting to around 1.3 million euros, and on the other hand, weather-related sales slumps in spring and autumn. In addition, there is a change in purchasing behavior in the fashion industry, which poses major challenges for the entire clothing trade.
Despite these challenges, the company based in Vienna will continue to operate. Online trading in particular should be promoted. For this purpose, the online store will be completely reorganized by January 2024.
The fashion company had already slipped into bankruptcy in 2019 and, as a result of the restructuring, reduced the number of branches to currently 29. In Upper Austria, Jones is represented in Linz, Wels and Vöcklabruck. According to the company, 140 people are employed throughout Austria. According to the creditor protectors KSV1870, the liabilities are said to be around four million euros, with the majority attributable to credit institutions.
- From the archive (2019): Next fashion retail bankruptcy hits traditional brand Jones
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