The manufacturer of the famous sweets is on the verge of bankruptcy

The manufacturer of Mozart sweets Salzburg Schokolade has filed for bankruptcy

The Austrian company Salzburg Schokolade, one of the filed for bankruptcy. The APA agency writes about this.

Salzburg Schokolade was on the verge of bankruptcy due to the coronavirus pandemic. The demand for the manufacturer's confectionery has collapsed due to a decrease in the number of tourists, weddings and other holidays. Sweet shops in Vienna and Salzburg were closed for several weeks due to lack of tourists.

Lockdown and a significant increase in raw materials, electricity, salaries, logistics costs and costs of packaging materials also became the reasons for bankruptcy, the director of the company noted. Christian Schuegerl.

The decrease in sales compared to the previous year was only partially compensated for in the new financial year. The company was unable to pay its employees the November salary and the Christmas bonus. According to the newspaper, 140 employees were on the verge of dismissal.

Earlier it was reported that Russian manufacturers of sweets are planning to increase the cost of products before the New Year. For example, the manufacturer of sweets and chocolate “Akkond” warned retail chains about a sharp rise in the price of products by 5-20 percent from December 1.