Struggling with a daunting 17 million euro debt, the renowned hotel empire has filed for insolvency.
Major Hotel Group Faces Financial Struggles: Alpin Family GmbH
In a surprising turn of events, the popular Austrian hotel operator, Alpin Family GmbH, has filed for insolvency, amassing a staggering debt of 17 million euros. The Dutch-owned company, which oversees hotel brands such as "AvenidA", "The House Collection", and "Alpin Rentals", is grappling with over 135 creditors and more than 70 employees affected by the situation. Despite the challenging circumstances, the company will persist in its operations.
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The Alpin Family empire encompasses over 3,000 beds across ten locations in Salzburg Pinzgau and Pongau, Tyrol, and Upper Austria, with headquarters situated in Vienna. The business intends to implement drastic restructuring and insolvency measures, maintaining smooth operations throughout the process. Notably, employee wages remain assured during this period[1].
Winter Woes and Integration Troubles
Alpin Family previously revealed ambitious plans to become one of the leading vacation providers in Austria and boost its annual turnover from 55 to 75 million euros by 2025. However, the integration of new businesses was lagging behind schedule, a complicating factor that contributed to liquidity shortages[1].
Additionally, soaring personnel costs and the effects of inflation and price hikes posed significant challenges. The company was only partially able to pass these costs on to consumers, intensifying financial pressures. In a statement, the company acknowledged a noticeable reduction in overnight stays, attributing it to "an unexpectedly weak winter"[1].
Credit protection associations reported that Alpin Family owns a total of 14 real estate shares, whose value will be determined during the insolvency process. The company also holds shares in associated companies and offers creditors a 20% repayment plan, spread out over two years[1].
[1] Source: European Credit Information Company (ECIC)
- "The financial struggles of Alpin Family GmbH have been noticeable within the Austrian hotel industry, as the company has filed for insolvency, oweing a massive debt of 17 million euros."
- "Despite its ambitious plans to become one of the leading vacation providers in Austria, Alpin Family's integration of new businesses was lagging behind schedule, contributing to liquidity shortages."
- "Alpin Family's troubles have been fueled by soaring personnel costs, the effects of inflation, and price hikes, which the company was only partially able to pass on to consumers, intensifying financial pressures."
- "Alpin Family's insolvency process will determine the value of its 14 real estate shares and the repayment plan to creditors, offering a 20% repayment spread out over two years."
