KTM steers into bankruptcy: Major roadblock for iconic brand
One of the most renowned sports motorcycle manufacturers, KTM, is declaring bankruptcy. The company is grappling with losses amounting to hundreds of millions of euros. It had implemented a complete production halt for two months and adopted a single-shift work system. Despite these efforts, no improvement was seen.
The well-known Austrian motorcycle manufacturer KTM is facing serious financial issues. It plans to file for bankruptcy on November 29, while simultaneously initiating a restructuring process under court supervision, as reported by the portal polskiobserwator.de.
The root of KTM's problems lies in a massive financial deficit totaling hundreds of millions of euros. Thousands of unsold vehicles are stuck in warehouses.
Employee challenges
This situation is adversely affecting the company’s 3,500 employees, who were informed about the crisis during a company meeting held on November 26.
According to the RUHR24 portal, the company lacks the funds to pay November salaries or traditional holiday bonuses.
The projections for 2024 are also grim, with the company anticipating further losses of additional hundreds of millions of euros.
Recovery plan
In an effort to improve its situation, KTM has implemented extensive recovery measures. It enforced a complete production halt for two months and adopted a single-shift work system.
These actions were described by the company's management as a "Boxenstopp," indicating a necessary technical pause aimed at facilitating a return to normal operations, explains the portal polskiobserwator.de.
Currently, KTM's priority is to reach an agreement with creditors within the next 90 days.
