Matt Atlas

Court Approves Sale Of Strunal Schönbach

The Regional Court in Pilsen has approved the sale of part of the assets of the insolvent Strunal Schönbach company. The leading European manufacturer of stringed musical instruments and guitars will be sold out outside the auction, the court ruled. However, its real estate, which has the highest accounting value, is not for sale yet. The resolution was published in the insolvency register today.

Strunal Schönbach got into trouble at the end of last year. However, the attempt to reorganize, mainly due to the coronavirus crisis, did not succeed, and the company ended up in insolvency. The insolvency administrator has now been authorized to sell the business.

Vehicles, machinery and equipment, inventory and small assets, the debtor’s business plant with the business company Strunal Schönbach sro, a set of trademarks, and other intangible assets and software will go on sale.

According to the inventory of assets, the value of Strunal Schönbech’s assets represents over 53 million crowns, while the highest price has the company’s premises worth 33.6 million crowns. However, this is not the decision of the court on the sale. According to the law, when selling outside the auction, the purchase price can be set below the estimated price. However, the insolvency administrator must also consider the costs that would otherwise have to be incurred to manage the monetized assets.

The court set clear conditions for the sale, namely that the property will be sold to the highest bidder. The purchase price will be paid at the latest upon signing the purchase contract, and the insolvency administrator has the right to reject all bids submitted.

For the tradition of producing musical instruments in western Bohemia, however, another of the companies whose brand had a world sound is the end of a greater loss. The Amati – Denak Easter plant is also in insolvency, but it still works in limited possibilities and thus has a chance to be saved.

The company Strunal Schönbach, based in Luby near Cheb, came from the national company Cremona. Before 1989, it was the largest manufacturer and exporter of stringed musical instruments in Europe. It achieved a turnover of up to 500 million crowns and was also the first company to have a USA branch under the previous regime.

Strunal has recently employed about fifty people. They were fired at the end of July. However, other musical instruments manufacturers are in a difficult situation, which the insolvency administrator approached with an offer to buy or take over the operation of Strunal. Everyone refused.

In 2019, according to the financial statements, Strunal had sales of over 30 million and a total turnover of 35.7 million crowns. However, it reported a loss of 15.5 million crowns. In 2018 it was a loss of 13.3 million crowns.

Even before the company’s collapse, at least a collection of musical instruments, which was owned by the company, was saved. The Karlovy Vary Region bought it, and before the epidemic measures, it was on display in the Lubský town hall building.