Austria's Largest Music Store is Bankrupt: Vienna Store Klangfarbe Seeks Continuation

According to its own statements, Austria's largest music store - Klangfarbe Musical Instruments and Sound Equipment - is insolvent. A reorganization procedure without self-administration was opened at the Vienna Commercial Court, reported the KSV on Wednesday afternoon. According to the Credit Protection Association, Klangfarbe has been operating an established music specialty store in Vienna for many years, which is to be continued. The liabilities amount to 3 million euros, around 110 creditors and 48 employees are affected.

Viennese company slipped into insolvency due to inflation

The Klangfarbe Musical Instruments and Sound Equipment Trading Company m.b.H. offers creditors a reorganization plan with a quota of 20 percent, payable within two years from the acceptance of the reorganization plan, according to the KSV. The company cites inflation due to the COVID pandemic and the Ukraine-Russia conflict as the main causes of insolvency. In addition, there have been sustained losses in sales, which triggered the self-application for a reorganization procedure. "The insolvency administrator will now have to examine in the coming weeks whether the debtor's reorganization efforts can be maintained," said Alexander Greifeneder from KSV1870.

(APA/Red)

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