After the German parent company went bankrupt in mid-June, the Austrian company Hellweg The Profi-Baumarkt GmbH applied for restructuring proceedings with self-administration at the Linz Regional Court on Monday. The aim is “the continuation and future-proof positioning of the company,” said Hellweg in a press release. The company operates six hardware stores and garden centers in Austria with around 165 employees.
According to the company, the six Austrian markets in Upper Austria, Salzburg and Styria will remain open with the full range. Customer cards, discounts and ongoing promotions remain valid.
Subdued customer demand and increased rental and operating costs
The Hellweg Group pointed to restrained consumer demand, burdens along the supply chains and rising rental and operating costs as the reason for the restructuring process. The hardware stores and garden centers should be “organized and repositioned on their own to make them fit for the future.” To accompany the process, the company’s management is supported by experienced restructuring experts.
Hellweg Austria wants to inform its employees about the situation on Monday. The workforce, partners and the public will be kept “informed early and transparently”.