Application for reorganization

Family business could no longer avert bankruptcy

"I didn't make it easy for myself," says Florian Teufelberger, head of rope manufacturer Teufelberger.

(Bild: Krone KREATIV/Teufelberger, Liebherr)

On the one hand, the best order situation of the last ten years, on the other hand, deep red figures: Rope manufacturer Teufelberger is going through turbulent times that have now made it necessary for one division to file for insolvency. The Wels-based company has filed for restructuring for the division that manufactures plastic packaging straps. 186 employees are affected.

It is the youngest division, the smallest business unit and has become the biggest problem child within the family business in recent months - now there is no other option but to file for insolvency. Florian Teufelberger, head of the rope manufacturer founded in 1790, announced this to the affected employees of the Strapping Solutions division on Tuesday afternoon. An application for restructuring will be submitted to the court on Thursday.

Full warehouses, lower prices
The division in which the family-run company from Wels manufactures plastic packaging straps used to transport bricks, wood, cans, bottles and the like has experienced enormous difficulties in recent months. Prices have fallen, as has demand, mainly because customers' warehouses were still full after coronavirus.

"The market is currently suffering from overcapacity, there are too many producers, especially in Eastern Europe, Turkey, Italy and Germany," says Teufelberger, who himself took over a business in Poland just under two years ago. Incidentally, the 120 employees working there are not affected by the insolvency, while the 186 employees in the Strapping Solutions division, which is based at Teufelberger GmbH, are fully affected by the bad news. It is already clear that they will no longer receive their January wages and salaries. They will become a case for the insolvency compensation fund.

The Teufelberger headquarters in Vogelweiderstraße in Wels: This is also where the Strapping Solutions division, for which a restructuring application will be filed on Thursday, is based.

(Bild: Teufelberger)

Demand is rising again
What happens now? Teufelberger wants to put the division "back on a solid footing". Demand has been rising again since November, but it was still not possible to avert bankruptcy. Will employees have to leave as part of the restructuring? "We can't say that no one will be affected," says the head of the family business, who had already cut 20 jobs in the affected division in recent months, for example by not filling vacant positions.

How did things go for Teufelberger in general? The 2024/25 financial year, which ends on Friday, was "quite challenging", he reports. Turnover remained stable at around 300 million euros. The fiber and steel wire rope divisions are doing well, with the highest order backlog in the last ten years.

Steel wire ropes from Teufelberger are used in the "Camp Nou"
"In the area of steel wire ropes, we received the largest order in the company's history in 2024," Teufelberger is pleased to report. This involves the delivery of steel cables for the roof construction of a soccer stadium. The company is not allowed to give any details, but it is likely to be the "Camp Nou" stadium in Barcelona. The entire Teufelberger Group employs 1400 people worldwide.