Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Vitkovice Heavy Machinery, a Czech engineering and metallurgical company is entering insolvency and has announced 350 job cuts due to the current economic challenges associated with the outbreak of COVID-19. The company, which employs 800 workers, was facing economic loses before the coronavirus outbreak and is now no longer able to sustain all of its financial operations and production.
The company resumed the operation of heavy machinery in early April 2020, after a short term termination of manufacturing in March 2020. During the shutdown, workers received 80 per cent of their salaries. Currently, the company aims to revitalise production in the steel plant. The foundry, moulding and cleaning plant, which are unprofitable and uncompetitive, according to the company's management, will be permanently shut down.
The redundancies will be carried out in accordance with the Czech collective dismissals regulations.
Eurofound (2020), Vitkovice Heavy Machinery, Bankruptcy in Czechia, factsheet number 100184, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/100184.