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.
Austrian computer retailer DiTech has filed for insolvency, thus making 60 to 92 out of its 254 employees redundant.
The restructuring programme foresees the closure of 10 out of the company’s 22 retail stores in all parts of Austria. The company, which has liabilities of EUR 30 million, hopes to save EUR 6.5 million annually with this measure. DiTech confirmed talks with investors.
Employees who are concerned by the job cuts have been given notices. As a precautionary measure, 120 employees have been registered with the Public Employment Service’s (AMS) early warning system; however the company hopes to only make 60 to 92 redundant. On 13 May 2014, the bailout plan will be voted on. Further information on the exact number of redundancies may then be available.
Update, 3 April 2014: Insolvent Austrian electronics company DiTech has been declared bankrupt as no investor was found. The closure of all 22 stores, which will affect 255 employees and the retailer has started closing down sales.
Eurofound (2014), DiTech, Bankruptcy in Austria, factsheet number 76749, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/76749.