Two years later

Hackl “still in the valley of tears” after bankruptcy

Oswald Hackl with his wife Christiane in front of their old company building. Just like the painted family in the background, they also stick together.

(Bild: Petra Klikovits)

2024 is considered an unprecedented record bankruptcy year in Austria. Even innovative leading companies are not immune to insolvency. Burgenland waste recycling pioneer Oswald Hackl experienced it himself. The resurrection of a failed company.

It is now exactly two years since the Lower Austrian waste disposal company Brantner took over Hackl Container Abfallbehandlungs GmbH. in Wulkaprodersdorf. Before that, the Burgenland-based family business, which most recently employed 70 people, had been a leading and model company for 44 years. But then owner Oswald Hackl Junior had to file for insolvency on July 14, 2022 due to over-indebtedness of 1.9 million euros. How does he see the bankruptcy in retrospect? And what does he actually do today?

"Looking back, it was a multi-organ failure. After the major fire in 2017, in which most of the company was destroyed, I invested more than 13 million euros in 2019 and 2020 in the construction of a new waste processing and sorting plant, the most modern in Europe at the time. But I was ripped off by a relative's electrical contractor. The estimated budget was suddenly more than three times higher than originally agreed. That used up all my financial reserves," explains the 52-year-old.

Until 2022, Oswald Hackl operated a completely new type of plant in Austria, which sorted 38,000 tons of lightweight packaging, cardboard, construction site waste, commercial and bulky waste per year, and classified the production of substitute fuels.

(Bild: zVg)

Due to the construction delays, the interruption to operations lasted longer than planned. And the insurance company had not paid out what had been agreed. And then there was the pandemic. "When we were unable to repay the bank loan and a promised subsidy failed to materialize, I called in a financial advisor in 2021 and looked for a strategic partner, but ultimately we couldn't get out of the predicament," Hackl describes the unfortunate chain of "our own mistakes" and "things you can't take into account".

Our biggest learning? No deals with friends and family. And: you see who really stands by you in these situations. As long as you're successful, everyone knows you. But when things go downhill, maybe two or three companions remain.

Oswald Hackl

At Oswald Hackl e.U., 98 creditors with claims of around 13.5 million euros were included in the restructuring plan. In the case of Hackl Container Abfallbehandlungs GmbH, 10.5 million euros in claims and 66 creditors were involved. In both cases, a payment of 20 percent in four installments over a period of two years was planned:

These days I have paid the last installment in the amount of almost 500,000 euros. Now I'm finished and face the next challenge: in the USA, you can even become president if you fail. In Austria, you can't even open a bank account. This means that I won't be able to make any major investments in the next few years, even if I have good ideas.

Oswald Hackl

All my savings are gone
Oswald Hackl and his wife Christiane, who was responsible for the company's accounts for 30 years, have learned to accept this and to reorient themselves professionally in their early 50s. A carefree life as private individuals is not possible. All their savings are gone, including their private assets.

"The only thing we've been able to keep is our house. And our knowledge. That's what we're using now," says the couple, who have been married for 32 years and have been through thick and thin together. After the takeover by Brantner, both were briefly employed there. But an entrepreneurial spirit cannot be put aside. That's why they set up their own business. They work in the old Hackl premises in Zagersdorf. The halls and the 6,500 m2 site still exist.

Hackl in front of his 35-year-old office furniture, which he had made from Tetrapak. The blue cast-iron horse head sculpture was Hackl's trademark for decades. It was one of the first pieces of debris that Hackl's father disposed of in the 1970s.

(Bild: Petra Klikovits)

That's what he does now
"My wife Christiane has recently started supporting small and medium-sized businesses for which a full-time employee in administration doesn't pay off. She takes care of all kinds of administrative tasks for them: Bookkeeping, invoices, reminders and correspondence. She has over 30 years of experience and knows a lot of shortcuts. I work as a freelance management consultant and support companies in optimizing their waste management and the transformation from waste management to a circular economy," says the business administration graduate, who was a pioneer in sustainability in this country. He would also like to rent out the former production halls in the near future. He is currently negotiating with three interested parties.

"I haven't overcome the valley of tears yet," he admits with wet eyes, before pausing. "Some days I can't get up, but on others I can already feel a spirit of optimism and a new fire inside me. My wife is a sensational support. We give each other support. Because giving up is not an option for us."