Kovosvit MAS Machine Tools

Type
Bankruptcy
Country
Czechia
Region
Česko; Jihozápad; Jihočeský kraj
Location of affected unit(s)
Sezimovo Ústí
Sector
Manufacturing
(28) Manufacture of machinery and equipment
28.2 - Manufacture of other general-purpose machinery
28.2 - Manufacture of other general-purpose machinery
178 jobs
Number of planned job losses
Job loss
Announcement Date
31 May 2024
Employment effect (start)
31 May 2024
Foreseen end date

Description

The traditional Czech engineering company Kovosvit MAS Machine Tools has announced the termination of production activities at the Sezimovo Ústí factory. As a result, 178 out of 220 employees will lose their jobs.

Kovosvit MAS Machine Tools has been insolvent since mid-April 2024 and workers have not been paid since March.

Until the summer of 2020, Kovosvit MAS belonged to a Czech entrepreneur Michal Strnad, who then sold it to the Russian investment fund Trust Union Fund. The new owner took over the company with liabilities and loans amounting to several hundred million. Due to the war against Ukraine, the company lost all deliveries to Russia, which made up about a tenth of all orders.

Sources

Citation

Eurofound (2024), Kovosvit MAS Machine Tools, Bankruptcy in Czechia, factsheet number 201239, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/201239.