Wollsdorf Leather goes into administration
Reports from Austria have confirmed that Wollsdorf Leather Group’s future is in the hands of external administrators. Restructuring and insolvency company KSV has confirmed that it is working on a turnaround plan for the leather manufacturing group, with a partner company, Kapp & Partners handling day-to-day administration.
It has said it may be possible for parts of the business to continue but only if this is in keeping with best interests of creditors.
The corporate structure comprises Wollsdorf Leder Schmidt and Wollsdorf International. Wollsdorf Leder Schmidt operates the company’s leather manufacturing plant in Austria. Wollsdorf International has 90% ownership of Wollsdorf Leder Schmidt.
The group also has leather production, leather cutting and sales operations in Mexico, China, Hong Kong, Croatia, Uruguay and the US.
Leatherbiz has asked KSV what the restructuring of the company will mean for these operations. The documents it has published suggest that a sale of assets is likely to be part of the turnaround plan KSV presents to creditors and to the authorities.
Head of insolvency at KSV for the Austrian states of Styria and Carinthia, Brigitte Peißl-Schickmair, told us: “The proceedings are still in their early stages.”
