Austrian luxury brand Petar Petrov files for insolvency

The eponymous luxury brand of Ukrainian-born designer Petar Petrov has filed for self-administration and is set to enter a restructuring plan following mounting debt.

The business filed with the Handelsgericht court in Vienna, Austria, after its liabilities amounted to approximately 3.6 million euros (2.3 million pounds) which were owed to an estimated 80 creditors, according to Drapers.

The media outlet stated that the plan would see creditors “receive a payment of 30 percent of their claims within the 24 months after the approval of the reorganisation plan”.

This 30 percent is “the minimum quota” required to be repaid under Austrian law, a spokesperson for credit management services and representatives of the creditors Creditreform told Drapers.

In his own statement, Petrov noted that the production market over the last year had “become increasingly complex to navigate”, resulting in challenges towards business planning.

He continued: “We have managed to remain stable despite the unprecedented global crisis from the Covid-19 pandemic but its consequences and additional challenges from external factors have led to a decision of restructuring our company.

“After long and careful consultation with our lawyers and lenders, we have reached an agreement to undergo a financial restructuring that will substantially improve our financial position.”

Petrov did confirm that the move would not include a liquidation of the business, and would additionally not impact the company’s partnerships with stakeholders or retail partners.