— Machinery producer Reich-Austria GmbH and its parent holding group
Holz-Her GmbH announced January 14 that they have started bankruptcy
proceedings, according to an online report by William Green for Austrian Times.

According to the report, the Alpine Land Creditors Association (AKV) said the
firms had debts of around 37 million Euros and more than 800 creditors and that
the proceedings will affect 260 of 290 employees in Austria and 90 in Germany.

AKV said Reich-Austria, which started in 1914, has suffered a massive drop in
business because of the recession, and a 50 percent fall in turnover year-on-year
to 50 million Euros in 2009 led to banks slashing its credit lines, the AT report also said.

Reich-Austria specializes in high-value machines for the woodworking industry.

Have something to say? Share your thoughts with us in the comments below.