Reorganization proceedings

“König” slides into bankruptcy worth millions

The Rankweiler company's liabilities amount to around EUR 21.3 million.

(Bild: Stock Adobe)

As reported by KSV, restructuring proceedings with self-administration were opened on Monday for the assets of the company "König GmbH & Co KG" at the Feldkirch regional court. The bankruptcy of the Rankweiler company affects 361 employees. The debtor's liabilities amount to around 21.3 million euros. 

Under the "ELKO KÖNIG" brand, the applicant has been one of the leading companies in the field of component production for high-performance engines for road and off-road motorcycles as well as for industrial and high-performance engines for almost 80 years.

Engine parts for global manufacturers
At the Rankweil site, the applicant develops and produces pistons, piston rings, cylinders and cylinder heads for two- and four-stroke engines as well as for gas and diesel units.

The applicant primarily supplies all leading global manufacturers and, thanks to its specialization and efficiency, has secured a position in the supply chain of key components for these global market leaders that is difficult to substitute.

Decline in orders
The debtor cites significant declines in orders and sales, rising energy costs and above-average collective wage agreements in Austria, which have caused wage cost increases of almost +20 percent in the last two years, as reasons for the insolvency.