Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
On 20 November 2009, Quelle Österreich sent notification of the planned dismissal of all its 1,100 employees to the Labour Market Service (AMS).
The insolvent mail-order retailer is headquartered in Linz (Upper Austria). The insolvency had become inevitable since no investor could be found that was willing to further finance the Austrian subsidiary of the German Quelle company. Quelle is owned by the German retailer Arcandor, which had gone bunkrupt in summer this year.
Both management and the works council of the Quelle Österreich blamed the German Arcandor insolvency administrator. His decision to sell the brand name Quelle to the German competitor Otto would have deprived the company of its basis of life. Therefore, Quelle Österreich had to file for bankruptcy on 16 November 2009.
The AMS has set up an insolvency re-employment scheme, which is jointly funded by the province of Upper Austria and the employment service, and - together with the Chamber of Labour - established temporary advisory offices at the firm's premises in Linz. Between 300 and 500 of the 1,100 employees affected, 70% of which are women, are expected to participate in the re-employment scheme, which will provide for training courses and scholarships for up to four years. The collective dismissal will come into effect on 17 December 2009.
Eurofound (2009), Quelle Österreich, Bankruptcy in Austria, factsheet number 69916, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/69916.