Osvetlovaci sklo-Lares declared bankrupt

The Regional Court in Ostrava, South Moravia, Czech Republic, declared lighting glass producer Osvetlovaci sklo-Lares Valasske Mezirici bankrupt on 13 June, with the petition filed by the firm“s exec…

The Regional Court in Ostrava, South Moravia, Czech Republic, declared lighting glass producer Osvetlovaci sklo-Lares Valasske Mezirici bankrupt on 13 June, with the petition filed by the firm“s executives on 7 June due to financial difficulties, judge Pavla Tomalova said. Ivana Santariusova was appointed as bankruptcy assets administrator. On 3 June the company told 120 of its 350 employees to take a holiday, which was to last till 16 June. “The executives discussed with us the extension of the holidays by a few weeks, and people should have been at home for 60% of their wages, which we have not approved,” union head Adela Cochlarova said on 17 June, adding the outcome of the talks was that employees will stay at home until 30 June and will be paid average wage. For now, the company is able to finance only production of glass for reflectors. The company exports 70% of output and the strong crown alone makes it lose CZK 1.5 million per month, executive director Jaromir Zurek announced earlier. Another reason is a significant reduction after the 11 September terrorist attacks on the US of supplies of glass for reflectors to a French buyer which supplies goods onto the US market. Last year the company“s sales reached CZK 160 million. Almost 60% came from the sale of lighting glass, and the rest was from glass for reflectors. The principal buyers are Germany, Austria, the Netherlands, France and the Scandinavian countries.