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.
Manufacturing Manufacture Of Material For Textiles, Apparel, Leather And Related Products Manufacture Of Textiles 13.96 - Manufacture Of Other Technical And Industrial Textiles
504 jobs Number of planned job losses
Announcement Date
31 January 2024
Employment effect (start)
31 January 2024
Foreseen end date
Description
Brucha, a traditional Austrian insulation producer based in Michaelhausen, Lower Austria, has filed for insolvency. 504 employees are affected.
The listed reasons for insolvency are incorrect investment decisions, namely unrealistic market assessments and inadequate profitability calculations, the continuation of unprofitable business areas and branches despite persistent losses, and inadequate financial planning and monitoring. The company itself states that misplaced investments in mechanical equipment, high cross-subsidisation in sales companies in the USA, Singapore, and Switzerland, calculation errors in major projects, and high costs due to complaints and damage repair all led to insolvency. The poor market situation and lack of a distribution structure in Switzerland are mentioned as further reasons therefore.
Brucha has been producing insulation materials for industrial and commercial buildings for 75 years. According to Creditreform, the company operates three business divisions: Production and sale of insulation panels, modular cold storage and freezer cells and PS insulation panels. Brucha has branches worldwide. However, sales are managed from Austria and Germany. The company was founded in 1948. In terms of the number of employees affected, this insolvency case is the largest so far in the year 2024.
Sources
31 January 2024: oberösterreichische nachrichten.at (www.nachrichten.at)
Eurofound (2024), Brucha, Bankruptcy in Austria, factsheet number 200781, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/200781.
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