Viennese Music Store Klangfarbe Continues: Reorganization Plan Accepted

The debts (liabilities) of the Vienna music specialty store Klangfarbe recently amounted to 3 million euros. The approximately 110 creditors will receive a quota of 20 percent, payable within two years. On Tuesday, the restructuring plan meeting took place at the Vienna Commercial Court.

Numerous Employees of Vienna Music Specialty Store Klangfarbe Lost Jobs

The music house located in the Vienna Gasometer has "already implemented all feasible restructuring measures," including the closure of individual business units and "a significant reduction in staff," according to the AKV in a release. All employees are musicians themselves. According to a "Standard" report from last Monday, up to 20 of the nearly 50 Klangfarbe employees have lost their jobs. Further reduction in staff numbers is no longer possible according to the insolvency administrator. In the future, a "moderate increase" in staff is planned, for example, to better cover vacations and sick leaves. As causes of insolvency, the musical instrument retailer cited in June the price increases due to the coronavirus pandemic and the Ukraine-Russia conflict. In addition, there have been sustainable revenue losses. For years, more and more musical instruments and accessories have been purchased online. The global online business is dominated by the German music retailer Thomann.

(APA/Red)

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