Palmers Announces Layoffs to the AMS

"At present, it is not foreseeable whether and to what extent this measure will be implemented," Palmers announced on Monday in a statement. The company did not provide figures on possible job cuts in response to an APA inquiry. Currently, discussions are underway with investors and the announced restructuring plan is to be implemented more quickly.

Palmers in Search of an Investor

"The highest priority is a sustainable continuation of the company and the safeguarding of the employees' jobs," Palmers stated. The underwear manufacturer is currently looking for investors. This is evident from the minutes of the general meeting that took place at the end of January. Who this investor could be or how much stake they could take in the company is not mentioned in the minutes. It simply states, "that there is currently an investor who plans to invest in the company. If this entry occurs, a capital increase is planned." The company did not want to comment on when the investor's entry should be finalized to the APA.

Palmers' Loss Has Increased Significantly

Palmers urgently needs the additional funds. In the fiscal year 2023/24, the loss more than tripled to 14.7 million euros. Sales fell from 71.5 million to 66.6 million euros. By the middle of next year, Palmers also has to refinance high million-dollar loans. "A key assumption for the positive going concern forecast is the negotiation of the loans due on 30.6.2025 amounting to 14.418 million euros (COFAG)," the company's annual financial statements said in the fall. There also seem to be problems with employee salaries, as reported by the "Salzburger Nachrichten" (weekend edition). The last monthly salary was not paid, the newspaper wrote on Saturday. This was argued with "possible delays".

Palmers AG is 100 percent owned by P Tex Holding. This, in turn, is owned by Luca (22.2 percent) and Tino Wieser (27.7 percent), who are also the managing directors of P Tex Holding. The remaining 50 percent belong to the CFA Contact-Finanz und Handelsaktiengesellschaft (CFA AG) based in Liechtenstein. Palmers Textil Aktiengesellschaft also includes the insolvent mouth-nose protection (MNS) and FFP2 mask producer Hygiene Austria. At the end of June 2024, the company was ordered to close as part of the bankruptcy proceedings.

(APA/Red)

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