Transport firm Karl Georg Zech (Austria) has started bankruptcy proceedings, according to Austrian Times. The firm, in Nüziders in Vorarlberg’s Bludenz district, entered bankruptcy proceedings yesterday in Feldkirch provincial court.
The Credit Protection Association of 1870 (KSV) said the firm had debts of 1.2 million Euros at the end of 2008. It added the bankruptcy would affect 18 employees and 65 creditors.
KSV said a significant drop in turnover was behind the bankruptcy, adding the firm hoped to continue in business.
The Creditors Association Europa (AKV) warned earlier this year that 500 of Austria’s 4,288 haulier and 900 conveyance companies faced the threat of bankruptcy amid increasing competition in Austria and Eastern Europe as well as soaring fuel and maintenance costs and a slump in orders.