Bankruptcy of a well-known automotive supplier worth millions: 365 jobs are shaky

“The “Wollsdorf Group” was unable to react immediately to the sudden drop in sales because ongoing fixed cost burdens were not reduced immediately, but only over a period of 6 months, which led to high ongoing losses,” it continues

“Supply bottlenecks had a significant impact”

“In an effort to reduce material costs, new prices were negotiated with the suppliers for raw hides and the suppliers were also changed in some cases. In March/April 2025, there were delivery bottlenecks due to numerous cases of foot and mouth disease in Hungary and Slovakia. These delivery bottlenecks had a significant impact on the quality of the raw hides delivered and further on the output in production. The material usage ratio is therefore from the planned 44.8% to 52% increased, as a result of which the result situation for the applicant unexpectedly deteriorated further,” the application further states.

In an effort to reduce material costs, new prices were negotiated with suppliers of raw hides and in some cases suppliers were changed. In March/April 2025 there were said to be delivery bottlenecks due to numerous cases of foot and mouth disease in Hungary and Slovakia. These supply bottlenecks would have a significant impact on the quality of the raw hides delivered and, furthermore, on the output in production. As a result, the material usage rate rose from the planned 44.8 percent to 52 percent, which unexpectedly further deteriorated the applicant’s earnings situation.

“Repayment of all financing lines by the banks”

“The quality problems mentioned could not be remedied operationally because the quality assurance standards in the factory in Austria could not be guaranteed to the required extent. Future profitable production in accordance with the quality assurance standards mentioned would only be possible by relocating the production site to Mexico,” the company informed the court.

And it also says: “As a result of the effects of the crisis in the automotive sector on the applicant, it concluded a restructuring agreement with the banks financing it on April 30, 2025. As is usual in such cases, this agreement stipulated that the banks’ approval was required for essential restructuring measures (including production relocations). After the applicant became aware of the absolute need for a timely relocation of production to Mexico, corresponding discussions were immediately held with the banks in Since an “owner contribution” requested by the banks in this context could not be provided in the form desired by the banks, these discussions ultimately failed at the end of December 2025 (unexpected for the applicant). This resulted in the aforementioned restructuring agreement being terminated and all financing lines being called in by the banks.”