Petition in bankruptcy for Reich-Austria and Holz-Her

One more victim of the economic and financial crisis. The woodworking machinery manufacturer Reich-Austria and its mother-house Holz-Her have recently made a petition in bankruptcy. According to the association of the creditors of Alps (Akv), the liabilities of the group, based in Voitsberg (Austria), amounted to nearly 37 million euros.
In Austria, 260 out of 290 workers lost their jobs because of this failure and in Germany 90 of them. There will be also over 800 creditors. Simultaneously the instance of failure, it has been required to open the insolvency procedure for the mother-company and its branches.
The orders strongly decreased and the turnover halved compared to last year. Consequently, the banks had considerably shortened their lines of credit.