Lena Hoschek is one of Austria’s most famous fashion designers. But now her company has to file for bankruptcy.
The Styrian fashion designer Lena Hoschek has applied for restructuring proceedings without self-administration for her company at the Vienna Commercial Court. The decision became necessary due to “drastically changed general conditions” such as the corona pandemic and ongoing delivery difficulties, Hoschek said in a statement. Creditors are offered a quota of 20 percent.
“We did not make this decision lightly, but given the current challenges, we have reached a point where, as a responsible entrepreneur, I have to apply for restructuring proceedings,” the statement says.
The designer specializes in traditional costume fashion. At the age of 13, Hoschek sewed her first dirndl with her grandmother. Today, the native of Graz specializes in items of clothing such as the ribbon skirt. Now she had to file for bankruptcy.
The company employs almost 50 people and has liabilities of around 6.82 million euros and assets of almost two million euros. According to a report in the “Kleine Zeitung”, the employees’ wages were paid up to and including August. Lena Hoschek is also planning to implement the 2025 spring and summer collection. However, the company would still need investors for this.
Hoschek emphasized that the step was necessary to secure the long-term future of the company. In addition to delivery delays, necessary advance payments and worsening financing conditions are putting a strain on operational business. Legacy issues from the corona pandemic also play a role.
A central component of the restructuring plan is the unrestricted continuation of business operations. The company was able to record continuous sales growth until 2023, it continues. Since its founding in 2005 by Lena Hoschek, the Vienna-based fashion company has developed and operates boutiques in Graz and Vienna as well as a global online shop.