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World-famous Salzburg chocolate company goes bust

World-famous Salzburg chocolate company goes bust

The Salzburg Schokolade company filed for bankruptcy, putting the iconic Mirabell Mozartkugel on the endangered list

On Monday, in a surprise turn of events, the manufacturer of the iconic Austrian Mozartkugel chocolates filed for bankruptcy. Salzburg Schokolade did not give out any hints that it was under financial strain and yesterday’s announcement caught the public off guard.  The biggest surprise, though, came for the nearly 140 employees in the company’s chocolate factory in Grödig, a small town on the edge of Salzburg.

Employees were shocked

The news broke as the company cited that it cannot afford to pay the workers’ November salary. Luckily, despite the sudden development, local authorities have vowed to cover lost employee wages, as officials pledge to not leave anyone behind over the Christmas months.

Apart from lost wages, though, the bankruptcy is a blow to Salzburg’s business profile, considering the city has a monument to the Mozartkugel. After all, the Mozartkugel chocolates are a staple of Austria and Salzburg. With this development, eyes are fixed on the future of the brand legacy, and whether there will be a Mozartkugel at the end of 2021.

A court-appointed insolvency administrator will decide the best course of action from here on.

On the part of the company, their subsidiary located in the Czech Republic would not be affected by the bankruptcy and will continue to operate normally. According to a report from the ORF, Austria’s national news network, workers in Salzburg will now work with the leftover raw materials with no expectation of additional supplies.

A rich tradition is leaving Salzburg

Chocolates, skiing and classical music are practically synonymous with Salzburg and the bankruptcy of Salzburg Schokolade will change the city, without a doubt. Originally, the company was established in the 19th century. The real game-changer, though, came in 1948 during Austria’s so-called economic miracle after World War II.

In 1948, the company created the ‘Mirabell Mozartkugel’ sweet treat and moved production to Grödig. At the same time, sales took off and their range of products became world-famous. Seven years ago, the company was taken over by a group of investors, aiming for increased growth. Considering recent developments, things seem to not have gone as planned.

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