The Regional Court in Pilsen granted Strunal Schönbach’s proposal and turned the company’s approved reorganization plan into bankruptcy.
Strunal produces stringed musical instruments, violins, violas and cellos, and more. But sales of musical instruments in the world have almost stopped. These are goods that customers need to touch physically. Sales of musical instruments have fallen by 60 to 70 percent, and the only thing that still works is online sales.
Another factor that signed the company’s outlook was the law, which was to protect debtors from the effects of the measures at the coronavirus measures. However, this does not apply to companies that are in the stage of permitting a reorganization, but before approving the reorganization plan.
Strunal had sales of over 30 million crowns last year and a total turnover of 35.7 million crowns. However, it reported a loss of CZK 15.5 million, in 2018, it was a loss of 13.3 million crowns.