Part of the Pierer Group

KTM now also bankrupts software company

Five and a half weeks after the opening of insolvency proceedings at KTM, two software companies from the group are now also insolvent.

(Bild: Krone KREATIV/Markus Wenzel, stock.adobe.com)

Since the opening of insolvency proceedings at motorcycle manufacturer KTM, subsequent bankruptcies had been expected - now there are two more. Avocodo GmbH, part of the Pierer Group since the end of 2018, officially went bankrupt on January 7. 126 employees are affected. Restructuring proceedings have been opened. Pierer E-Commerce GmbH is also insolvent.

The cost-cutting and restructuring measures in the group surrounding the insolvent motorcycle manufacturer KTM claimed its next victim on Tuesday: Avocodo GmbH from Linz has gone bankrupt. The company, which provides extensive software services for KTM AG, KTM Forschungs & Entwicklungs GmbH and Pierer E-Commerce GmbH, has been subject to restructuring proceedings without self-administration at the Linz Regional Court, reports the Austrian Creditreform Association.

Majority ownership by the Pierer Group since the end of 2018
At the end of 2018, the Pierer Group acquired 70 percent of Avocodo; Pierer Mobility AG now holds 100 percent of the company, which operates from Linz and employs 126 people. The causes of insolvency are said to be the outstanding receivables from the main customers KTM AG and KTM Forschungs & Entwicklungs GmbH, which are no longer paid or only paid to a very limited extent. The liabilities amount to around 6.8 million euros. Avocodo GmbH is to be continued under restructuring administrator Peter Shamiyeh. A short time later, it also became clear that Pierer E-Commerce GmbH (25 employees) is now also a case for the insolvency court according to KSV1870 - albeit the one in Ried im Innkreis. Liabilities: around four million euros. Peter Virtbauer was appointed insolvency administrator.

Metal foundry could no longer pay wages and salaries
Although the fear of subsequent bankruptcies was also underpinned by facts at the hearing on December 20 at the regional court in Ried im Innkreis, the companies directly associated with KTM had remained relatively quiet until then. With one exception: on December 13, bankruptcy proceedings were opened against Vöcklabrucker Metallgießerei GmbH, or VMG Metall for short. The former family business is a 100 percent subsidiary of KTM Components GmbH and was no longer able to pay wages and salaries because the payments initially promised by KTM Components were not made after all.

Buyer sought for VMG Metall
A heavy blow just a few days before Christmas, which has already cost some of the 134 VMG Metall employees their jobs. The insolvency administrator has already closed various parts of the company and is now looking for a buyer for the company, which was swept away by the mega-bankruptcy.