Juicy million-dollar bankruptcy of a sporting goods wholesaler

Postscript: “Today we use all of this experience and passion to implement our vision of innovative and functional sportswear. Our team of designers and product managers work closely together to develop products that meet the needs of athletes around the world. We are proud that GTS Sports is now an established outdoor brand that stands for quality, functionality and design.”

Company from Linz goes bankrupt

We are talking about the TEXSPO Textile and sporting goods wholesalerbased in Linz, which operates under the brand GTS Sports Her assets were reported AKV, Creditreform and KSV1870 A restructuring procedure without self-administration was opened. 22 employees are affected by the bankruptcy.

“The debtor, founded in 2006 and based in Linz, is active in the wholesale trade of clothing and sporting goods. The debtor acts as a full-service provider in the field of outdoor clothing, nautical, cycling, skiing and fitness. According to the application for opening proceedings, the applicant acts, among other things, as a supplier for Hervis, Intersport, Reusch or TK Maxx. The management is carried out by Mr. Peter Gerhofer, who is also one of two co-partners,” says the AKV.

The causes of insolvency

“Regarding the reasons for the slide into the insolvency proceedings, the application for the opening of the insolvency proceedings states that there had originally been an increase in sales due to Corona. However, the increase had also led to higher running costs and an increase in the number of employees. With the start of the war in Ukraine, there was subsequently a cooling off in consumer behavior and there were said to be fewer orders,” said the AKV.

“In 2023, these developments are said to have led to a situation in which high inventory levels and lower demand were at odds with each other. The general crisis in the textile and fashion industry made matters worse, leading to a further setback in demand. Ultimately, this application for restructuring proceedings without self-administration had to be submitted.”

Debts and assets

According to AKV, liabilities amount to 8.027 million euros, while assets amount to 2.77 million euros according to Creditreform.

The future

The summer collection for 2025 is currently being worked on and, according to the information in the insolvency application, orders have already been placed. The winter collection for 2025 is finished and the sales samples are already in production,” says KSV1870. The insolvency creditors are to pay a 20 percent quota within 24 months from the date of adoption of the restructuring plan.

“After the insolvency administrator has assessed the debtor’s assets and determined the claims, we expect an improvement in the restructuring plan, particularly with regard to earlier payment deadlines,” says Petra Wögerbauer from KSV1870