William Malcolm

SKD Bojkovice Enters Bankruptcy Fires All Employees

SKD Bojkovice has laid off all of its 350 employees. The company makes injection molds and plastic parts for the automotive industry.

The company has been in insolvency since October 2019. The court allowed it to reorganize, but the company has not yet found an investor. Last month, the Regional Court decided to convert the reorganization into bankruptcy. Claims registered are over CZK 492.5 million. “Negotiations on the entry of the investor are still ongoing. Within two days, we could have information on whether we were able to find an investor to enter the company. That is why we would try to withdraw the statements,” owner Pavel Babis said.

According to the Managing Director, the statements made by the Czech Television concern about 250 regular and about 100 agency employees. “The company is in bankruptcy, which gives us other options that were not within the reorganization. At least the process of finding an investor could be significantly shorter. There is not so much approval, there is no takeover in several months,” said Babis.

According to him, the company does not help the current pandemic of a new type of coronavirus. “Some of our customers have seen a drop in demand. Our largest automotive customer, which accounts for more than half of the revenue but still receives products,” said the executive.

As of 11 March, the company, the insolvency administrator of SKD Bojkovice, informed the court that the total amount of claims filed exceeded CZK 492.5 million. The total amount of secured receivables was calculated by the trustee at more than CZK 471.1 million. Insolvency proceedings were launched by the supplier of the AV Engineering software with a claim of almost CZK 1.3 million. With almost CZK 261.1 million, the largest secured creditor is Česká spořitelna.

In 2017, the company reported revenues of almost CZK 810 million and profits of CZK 22.8 million. Sales fell to CZK 776 million last year, and the company ended with a loss of CZK 191.5 million, according to the company’s annual report. In 2018, the company employed an average of 467 people, and for 2019 it assumed a loss of 37 million crowns. Last year, the company did not officially publish its financial result.