Salzburg chocolate: the last curtain for the Mozart ball?

Salzburg chocolate: the last curtain for the Mozart ball?

Salzburg, Österreich - The Salzburg chocolate, known as the manufacturer of the "real Salzburg Mozart balls", has again filed for bankruptcy. The bankruptcy application was submitted to the Salzburg district court after the company had to take a similar step in 2021, but could be saved by a renovation plan. According to T-Online, however, the company failed this time, but this time the promised 100-percent mandatory plan quota fulfill.

The latest bankruptcy application comes after an assessment of the property of the company led to a drastic reduction in its value. A current report estimates the value of the real estate at 9.9 million euros, which made the basis for the payment in the renovation plan. In this context, the company's debt grew to 7.7 million euros, while 300 creditors are waiting for a repayment. Kleine Zeitung In 2024 58 employees were employed in the company, whose employment relationships have now been ended.

history and challenges of the company

The history of the Salzburg chocolate begins in 1897 with a small confectionery factory in Salzburg. In 1948, production was relocated to Grödig for reasons of space. Over the years, the company experienced various changes of ownership, including big names such as Suchard, Interfood, Power Food and Mondelez. Despite these heights and depths, the brand remained known, especially through the "original mozart balls", which are made by the prince of the pastry shop and are characterized by its blue aluminum foil.

In 2021, the company hired the production of the "real Salzburg Mozart ball" for the first time and registered bankruptcy. Some of the creditors were able to expect a repayment of 20 percent of the claims, while 80 percent should have been paid by February 7, 2025. The difficulties, however, strengthened, and the company was forced to sell the factory building in Grödig and several plots to pay debts. Zeitung also reports that an investor group is planning to build offices and to locate new companies there.

bankruptcies in the Austrian economy

The bankruptcy of the Salzburg chocolate is part of a larger trend in the Austrian economy. According to Statistics Austria Since the first quarter of 2021, data about corporate registrations and insolvencies have been collected since the first quarter of 2021. The main data source for bankruptcies are judicial insolvency proceedings that show an increasing proportion of registration.

The development of the Salzburg chocolate throws a shadow on the long tradition and the legacy of Mozartkugel production in Austria. It remains to be seen how the situation will develop for the creditors and workers in the region.