Two more KTM companies went bankrupt: 150 employees affected

It was clear that the KTM empire was continuing to crumble. Now the assets of the Avocodo GmbH Reorganization proceedings without self-administration were opened at the Linz Regional Court. That reports Credit reform the COURIER. Around 75 creditors and around 125 employees are affected.

The company was founded in 2000 and deals with digital strategies, mobile applications and web applications. It is a contractor for the provision of extensive software services to KTM AG, KTM Forschungs- & Entwicklung GmbH and PIERER E-Commerce GmbH.

The causes of bankruptcy

“According to the insolvency application, the causes of the insolvency lie in the outstanding claims that have no longer been paid or have only been paid to a very limited extent by the main customers KTM AG and KTM Forschungs- & Entwicklung GmbH, over which restructuring proceedings with self-administration have been opened since the end of November,” it continues.

Debts and assets

The assets (liquidation value) amount to around 1.034 million euros, the liabilities 2.81 million euros.

“The majority of the existing assets consist of claims within the KTM Group; in the event of liquidation, these will be valued at around 600,000 million euros according to the opening application,” he said AQUA. “The fixed assets are valued at around 40,000 euros, and there are bank balances of around 400,000 euros, which arose from the receipt of customer claims.”

The future

“The continuation of the debtor is planned and it is also essential for the continued existence of KTM AG and KTM Forschungs & Entwicklung GmbH,” the AKV further states. “According to the information in the opening application, a continuation is also economically feasible from ongoing operations. In addition, discussions have already been held with potential external investors who have shown interest in investing in the applicant.” Creditors should be offered a 20 percent quota.

Second bankruptcy

Those too Pierer E-Commerce GmbH, has slipped into bankruptcy. According to KSV1870, 25 employees are affected. “She designs the digital sales channels for the KTM Group, maintains the online shops for various brands in the group, and implements the marketing campaigns to increase online presence and sales,” it continues.

“The debtor, founded in 2001, is responsible for the online sales and digital marketing of the Pierer Group’s products and services and plays an important role in the Pierer Group’s digital strategy, particularly with regard to the growing online market for motorized two-wheelers . It provides the KTM group companies with various services for a fee, such as the operation and maintenance of the group’s own websites for end customers (around 50 million user inquiries annually) and the processing and support of the Online sales for retailers worldwide,” says KSV1870. “The applicant is primarily the general contractor for KTM AG and generates 96% of the income through this company. The causes of the insolvency can therefore be found primarily in the declaration of insolvency by KTM AG, since the services provided could not be paid or only to a small extent in November and December 2024.”

The debt is estimated at around four million euros.

Creditors are offered a 20 percent restructuring plan. “The quota is to be financed through continuation and through grants from third parties,” it goes on to say.