Corona Mask Scandal: Hygiene Austria Closed - Business Live
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Hygiene Austria,the company founded during the height of the COVID-19 pandemic and quickly embroiled in controversy over its FFP2 mask production,has been officially liquidated by order of the insolvency court. The closure marks the final chapter in a saga that involved allegations of mislabeled products and labor law violations.
According to information released by Creditreform, a government-preferred creditor protection association via oe24, the insolvency proceedings have reached their conclusion. Attempts at restructuring the company proved unsuccessful, leading to the court-ordered closure.
Creditor Losses: A 6% Return
The final accounting session, held at the regional court in Wiener Neustadt on Thursday, revealed a bleak outlook for creditors. They are expected to receive a mere 6% return on their outstanding debts.
This translates to approximately €75,000 recovered from a total debt of €1.26 million, representing a considerable loss for the 40 creditors who registered claims totaling €1.26 million.
The Scandal Unravels: Mislabeling and Labor Concerns
Hygiene austria, a joint venture between a laundry manufacturer and textile group Lenzing, became the focal point of a significant scandal in 2021. The company faced accusations of importing FFP2 masks from China and falsely marketing them as being of “domestic quality.”
Beyond the product mislabeling, serious concerns were raised regarding labor practices within the company. Hygiene Austria filed for bankruptcy in early 2024, bringing the full weight of the scandal to bear. The initial controversy surrounding the company first surfaced in 2021.
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