According to ISPO, Elan’s Austrian snowboard factory has filed for bankruptcy:
Based in the Austrian town of Fürnitz, the snowboard factory of Elan has filed for bankruptcy, according to local media. The production plant, which employs 78 people, suffered from heightened costs for raw materials and the loss of OEM production assignments. The situation apparently became untenable after the factory’s Slovenian parent company refused to come to the rescue. Der Standard, the Austrian newspaper, reports that debts are as high as €8.7 million and that the banks involved were no longer willing to provide the necessary guarantees. Back in 2011, the plant’s turnover was up by 5.5 percent to €18.25 million, but with an operating loss of €1.5 million. In 2012, total sales plummeted to €13.75 million, whereas the operating costs remained more or less stable.
Stay tuned for more details on what this means to the industry and the brands that produce there.