Insolvency Challenges for A-Nobis Sparked by Pandemic and Expansion Costs
The A-Nobis Sektkellerei, located in Gols, Burgenland, has entered insolvency proceedings, revealing significant financial difficulties exacerbated by the COVID-19 pandemic and the costs associated with its recent expansion. Founded in 2018 by Norbert and Birgit Szigeti, the company has struggled to meet its financial obligations, prompting the local court in Eisenstadt to initiate a restructuring process.
Despite promoting a range of exclusive sparkling wines and receiving accolades such as the Burgenland State Winner in 2023 and 2024, the future of A-Nobis appears uncertain. The company's inability to generate sufficient revenue during the pandemic has been a critical factor in its financial woes. Additionally, the approximately EUR8 million investment in a new facility, which was touted as Austria's most modern at its opening in 2020, has further strained the company's finances.
As of now, A-Nobis faces total liabilities exceeding EUR6 million, while its assets are valued at approximately EUR1.18 million, resulting in a substantial over-indebtedness of over EUR4.8 million. This situation has impacted around 70 creditors and 12 employees, all of whom are now part of the ongoing insolvency proceedings.
The proposed restructuring plan aims to alleviate some of the financial burden by offering creditors a recovery rate of 20 percent over a two-year period, to be paid in four installments. A specialized firm, Hipster Invest GmbH, has been designated to manage the sale of the property housing the winery, with the goal of reducing debts by approximately EUR4.2 million.
The feasibility of this restructuring plan is currently under assessment by the Alpenländischer Kreditorenverband (AKV), which is determining if the plan can be improved beyond its current format, which meets only the minimum legal requirements. A hearing to discuss the restructuring plan is scheduled for March 10, where it will be subject to approval by the majority of present creditors.
A-Nobis has previously attempted to secure its financial position through a somewhat unconventional measure. In May 2023, the Burgenland Economic Agency purchased 200,000 bottles of sparkling wine from the company for EUR800,000, which was intended to bolster its liquidity. The arrangement stipulated that A-Nobis would repurchase the wine three years later, incurring additional costs due to storage and interest.
Norbert Szigeti, one of the co-founders, had previously exited a partnership with his brother Peter Szigeti, who continues to operate a successful sparkling wine business under their original family brand, Szigeti. The current struggles of A-Nobis highlight broader economic challenges within the region, as many businesses are grappling with the lingering effects of the pandemic and rising operational costs.
As the insolvency proceedings progress, A-Nobis hopes to navigate through these turbulent waters, aiming to stabilize its operations and emerge as a viable entity in the competitive sparkling wine market. The situation reflects a wider trend of increasing business insolvencies across Europe, as economic pressures continue to mount.
