A major leather manufacturer from Austria Wollsdorf Leather has filed for insolvency. The move affects 365 employees and around 660 creditors.
Wollsdorf Leder Schmidt & Co GmbH and its holding firm Wollsdorf International GmbH have applied for a reorganization procedure without self administration. The reason is a prolonged slowdown in the automotive supplier industry.
The financial gap is wide. Wollsdorf Leder Schmidt & Co GmbH holds assets worth about €10.6 million while liabilities stand at €26.7 million.
The holding company shows assets of €320,000 against liabilities of €32.2 million. Both firms have proposed a repayment plan of 20% to be paid within two years after approval.
The pressure began in September 2024. Orders from major European car makers started to fall. Wollsdorf depends heavily on these product calls.
Demand weakened further over the months. Business improved slightly in 2025 but never returned to pre crisis levels.
The company tried to cut costs. It renegotiated prices for raw hides and switched suppliers in some cases.
New problems emerged in March and April 2025. Foot and mouth disease outbreaks in Hungary and Slovakia disrupted supply. This hurt raw material quality and slowed production.
Banks agreed to restructuring steps and jobs were cut. Even then the plan failed.
According to local media channels Wollsdorf is known for automotive leather like steering wheel leather covers make up 81% of revenue. Over 60% of all processed hides go into this single product. The company also produces airbag leather instrument panels, gearshift leather, and seat and door trims.
Furniture leather contributes about 7% of revenue. Aircraft leather accounts for roughly 6%. This leather is used by major airlines and private aircraft makers. Most auto sales come from just three European OEMs.
The company plans to fund repayments through future operations, asset sales and possible third party support.
The holding firm plans to sell investments and seek shareholder funding. Insolvency administrators will now review whether continuing the business benefits creditors.
