Gallus declared bankrupt
As a consequence of bad results in 2001/2002 and 2002/2003, Gallus the Austrian shoe producer has filed for voluntary insolvency. According to the bankruptcy petition, the outstanding debts of the company stand at €7.85 million. Negotiations are currently taking place to discuss the feasibility of continuing the business.
Kärnten, the region in which the company is based, is prepared to take act as guarantor for Gallus and it is hoped that a financial plan can be set up soon. At the time of the bankruptcy declaration, it was stated that monthly overheads stood at €1.5 million to cover wages, rent and the purchase of materials in order to keep the business afloat until
Gallus produces about 2,500 high quality men shoes every day and has an annual turnover of €20 million. According to Werner Falle, CEO of Gallus, the order book for spring and summer 2005 is full. The company will try to keep staff on at the factory until March 2005.
