The Brucha company has been producing insulation materials for industrial and commercial buildings for 75 years. According to Creditreform, the company is active in three business areas: production and sales of insulation panels, modular cold and freezer cells and PS insulation panels. According to AKV, Brucha has branches worldwide. However, sales are controlled from Austria and Germany.
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The bankruptcy is due to several factors: incorrect investment decisions, particularly due to unrealistic market assessments and poor profitability calculations; Holding on to unprofitable divisions and branches despite ongoing losses; inadequate financial planning and monitoring, which led to aggravation of liquidity problems and ultimately to insolvency and over-indebtedness.
According to the company’s own information, the KSV cites the causes of insolvency as, among other things, bad investments in mechanical equipment, high cross-subsidies to the sales companies in the USA, Singapore and Switzerland, miscalculations in large projects and burdens running into millions due to complaints and damage caused by subsequent improvements. Discussions with banks and potential investors were unsuccessful.
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The AKV attributes the slide into insolvency to the poor market situation and the lack of a sales structure in Switzerland, which was subsequently closed. There was also a loss of sales in the branch in the USA, as well as in Singapore due to entry restrictions due to Corona. Furthermore, the insolvency was due to complaints and repair damage, increased energy costs and increased raw material prices.