Million-dollar bankruptcy of the Austrian branch of an Italian pizzeria chain

Sales fell far short of expectations

The management cites the “unexpectedly low customer frequency” at both locations from the start as the main reason for the failure. The restaurants, which specialize in pizza and pasta, never reached the planned number of visitors. At the same time, the costs turned out to be permanently too high: high rents, marketing and service fees from the outlet center operators as well as significant personnel costs could not be covered by the income.

The result: Losses of around 900,000 euros piled up in less than two years. As a result, the company’s liquidity reserves were “completely depleted,” according to the bankruptcy filing.

Failed rescue by franchisor

In mid-January of this year, managing director Marco Gatti tried to find a solution. In a conversation with the Italian franchisor Sebeto SpA – which operates around 100 Rossopomodoro restaurants across Europe – he revealed the economic difficulties and warned of an impending closure.

Sebeto was initially interested: the Italian company agreed to take over 100 percent of the business shares and continue to run the restaurants itself. However, the condition was that the landlords significantly reduced rental and additional costs.

Negotiations between Sebeto and outlet center operator McArthur Glen began at the end of January.

On June 1, Sebeto surprisingly announced that the board had decided not to pursue the transaction.

Liabilities of 2.45 million euros

The total liabilities of Polparossa Due GmbH amount to around 2.45 million euros. However, almost half of this – 1.13 million euros – is attributable to a subordinated shareholder loan from the Italian parent company Polparossa Srl. This loan financed the construction of the two restaurants. In the event of insolvency, the shareholder will probably come away empty-handed.

The liabilities in detail:

In the event of a closure, there are also the termination claims of the 24 employees. According to the insolvency application, the wages and salaries were paid up to and including May 2026; the monthly wage costs amount to around 39,600 euros net.

High location costs in outlet centers

The costs for the two rented locations were particularly significant. In Parndorf alone, rent (8,420 euros), marketing contribution (4,050 euros), operating costs (4,467 euros) and storage rent (257 euros) add up to around 17,200 euros per month. In Salzburg, around 13,000 euros per month are incurred for rent (4,463 euros), marketing contribution (3,218 euros) and operating costs (5,334 euros).

These fixed costs could not be earned given the actual number of visitors – a structural trap from which the company could no longer escape.

Assets are not enough to cover this

This is offset by only limited assets: According to the application, there are around 38,400 euros in credit in the bank accounts, but the account at the house bank is overdrawn by minus 129,600 euros. Securities worth around 223,400 euros are pledged in favor of a bank and McArthur Glen and are therefore not available to the insolvency estate.

The operating and office equipment – especially kitchen equipment and restaurant furniture – has a residual book value of around 1.15 million euros. It remains to be seen whether this value can be achieved through recycling. A leased vehicle is also part of the company’s assets.

No continuation planned

The sole shareholder Polparossa Srl has already invested considerable funds and sees no possibility for further financing. “In view of the structurally low sales at both locations, there is no realistic chance of putting business operations on a sustainable, cost-covering basis,” it says in the insolvency application. A continuation is not intended; the management expressly agrees to a closure.