Connect

Type
Bankruptcy
Country
Austria
Region
Westösterreich; Oberösterreich;
Location of affected unit(s)
Sector
Administrative Services
Employment Activities
Employment Activities
78 - Employment activities
780 jobs
Number of planned job losses
Job loss
Announcement Date
30 June 2009
Employment effect (start)
30 June 2009
Foreseen end date

Description

The temporary work agency Connect has filed for bankruptcy for four of its subsidiaries, all of them located in Upper Austria, affecting 780 employees in total. The liabilities amount to € 14 million in total, while assets worth € 4 million could be secured. According to media reports, the insolvency has been caused by a dramatic decline in revenues due to the current economic downturn. It has remained unclear so far whether all the workers affected stand to lose their jobs. The regional government of Upper Austria has announced the opportunity for the employees affected to enter a special regional re-employment scheme co-financed by the province of Upper Austria and the Labour Market Service (AMS).

Sources

Citation

Eurofound (2009), Connect, Bankruptcy in Austria, factsheet number 69192, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/69192.