Hubert Auer

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The well-known branch on Graz Hauptplatz was closed years ago

(Bild: Jauschowetz Christian)

The traditional Graz bakery Hubert Auer is insolvent again after 2020. Although the company had managed to restructure, it is once again no longer solvent. This time, almost 50 employees are affected. 

In the event of liquidation, the liabilities amount to around 2.5 million euros, according to the credit protection agencies KSV1870, AKV and Creditreform on Monday. The assets amount to less than 300,000 euros. A new restructuring plan is to be concluded with around 60 creditors. 

Raw material costs have exploded
The company cited the loss of high-margin stores as the reason for the renewed insolvency: Several rental agreements had expired in 2023. Added to this were failed investments: Considerable funds had been invested in the conversion or expansion of existing and new stores. The third reason given was inflation: the cost of goods for raw materials had increased by 40 to 50 percent and personnel costs by 20 percent in the last two financial years.

Production to be relocated 
The company plans to continue operations by implementing a reorganization concept. Branches with low contribution margins are to be partially or completely closed. Production is to be relocated from the current site in Seiersberg to Gratkorn, which should lead to a significant reduction in costs. 

The bakery chain was already insolvent in 2020. At the time, liabilities amounted to just under 4 million euros and assets to 680,000 euros. Of the initial 77 employees, around 50 were still working in 16 branches after the restructuring. Now only 14 branches and 44 employees were left.