Textiles – Eterna shirt maker in need – economy

The manufacturer of shirts and blouses Eterna is in need. The Passau-based company said on Tuesday it would be doing a restructuring under judicial supervision. This means, among other things, that buyers of a $ 25 million corporate bond would have to give up 90% of their money. In addition, the shareholder wishes to waive the repayment of 32 million euros in loans. The legal basis is the Law on the stabilization of enterprises, in force since the beginning of the year, which aims to facilitate the restructuring of enterprises in crisis without insolvency proceedings. The shirts and blouses of the traditional company founded in 1863 with nearly 1,000 employees can be found in many department stores and textile boutiques. The immediate trigger for the crisis in Eterna is the corona pandemic, which hit the entire textile industry hard last year. In 2020, Eterna’s sales had decreased by a quarter to 78.7 million euros, the loss amounted to more than 9 million euros. Yet Eterna was already in the red in 2019 and 2018.

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