Mozartkugel manufacturer Salzburg Schokolade is bankrupt

Mozartkugel manufacturer Salzburg Schokolade is bankrupt
Mozartkugel manufacturer Salzburg Schokolade is bankrupt

The confectionery manufacturer Salzburg Schokolade, based in Grödig (Flachgau), went bankrupt. Bankruptcy proceedings were opened at the Salzburg Regional Court. According to KSV1870, around 140 employees and 614 creditors are affected. According to the company, the causes of the major insolvency are the loss of a major order in 2016 and a significant decline in sales from 2020 due to the corona crisis. It is unclear whether the company can continue.

As KSV1870 reported, the liabilities should amount to 27.29 million euros (liquidation value) according to initial information, on the assets side there would be 23.35 million euros. The prognosis for the continued existence of the company is initially negative. The restructuring of the company will still have to be examined separately. A subsidiary in the Czech Republic that specializes in the packaging of confectionery and food is not affected by the bankruptcy.

Although profits have been made in recent years, the company has been hard hit by the corona pandemic from 2020, wrote managing director Christian Schügerl in an email to employees and business partners on Monday. Due to the massive decline in tourists, events and occasions such as birthday and wedding celebrations, the demand for sweets from Salzburg Schokolade has fallen – which has led to a significant decline in sales. In addition, confectionery shops in Vienna and Salzburg were sometimes closed for weeks due to a lack of tourists.

Wage payments are canceled

The decline in sales from the previous year could only be partially compensated for in the new financial year. Despite new customers in the export business and the state Corona aid, as in the previous year, a considerable loss will be made again this year. “The current lockdown and considerable increases in the cost of raw materials, energy, wages, logistics costs and packaging materials were further reasons,” continued Schügerl.

November wages and salaries and Christmas bonuses cannot be transferred to employees. The company referred to the insolvency remuneration fund, which secured the payments, and advised employees to contact the Chamber of Labor (AK). The Salzburg AK President Peter Eder promised support to the employees concerned on Monday evening in the APA conversation. “We want to do everything possible so that people don’t have to worry financially, at least over Christmas.”

Sweet assortment

Salzburg chocolate is not only known for sweets for the end consumer – for example its brands Bobby chocolate bars, “Maria Theresia” -Taler and Salzburg Confisérie. The long-established company also produces the “Real Salzburg Mozartkugel” from Mirabell exclusively for the US company Mondelez. The company also supplies bulk consumers such as bakeries and confectioners under the “nordpol” brand with semi-finished products such as nougat, marzipan, couvertures, waffles and glazes.

The company was founded in the city of Salzburg in 1897 under the name Rajsigl-Süßwarenfabrik and moved entirely to Grödig in 1956. After several changes of ownership, the majority of the shares have belonged to Philipp Harmer Beteiligungs-GmbH since 2014, with managing director Christian Schügerl holding a small part of the company. While sales in 2019 were still 28.7 million euros, according to the Alpine Association of Accounts Payers, they fell by seven million euros (24.4 percent) to 21.7 million euros in 2020. The books showed a loss of around 1.2 million euros for 2020.

For the time being, it remained unclear what the insolvency proceedings would mean for the production of the Mirabell Mozartkugeln. The question is whether and how long the balls can still be produced in Grödig and how a production failure by the US confectionery giant can be compensated for. “We are entering into an exchange with the company Salzburg Schokolade and will evaluate the next steps,” said a Mondelez spokeswoman in response to an APA request and at the same time asked for understanding that at the moment there was no more to say about the situation.

 
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