Empty pockets at Styl Clothing Rt
Friday, January 21, 2005, 14:12
The trading of Styl Clothing Rt stocks was suspended by the Budapest Stock Exchange (BÉT) today at 10:49 a.m. after the management announced a liquidation procedure initiated against the clothing manufacturer at the Vas County Court. Acting on news of the acute financial crisis, Styl?s bank terminated the latter?s loans in turn. The directors of the company, which has been facing permanent financial difficulties, blamed the general crisis of the Hungarian light industry for the situation. Styl underwent several reorganizations over recent years, downsizing its workforce and restructuring its manufacturing processes, but with no avail. Its liquidity problems are aggravated by the fact that some of the company?s customers went bankrupt in the meantime, with Styl accruing over Ft 130 million in bad debt as a result.