Hungarian Gov’t Comes To The Rescue Of Styl
- 15 Apr 2015 9:00 AM
The government will offer a Ft 4.5 billion subsidy to save the clothing manufacturer Styl Ruhagyár in Szombathely, Vas County, Napi Gazdaság reports, citing the agenda of the city council, which will vote on the matter on Thursday. The court ordered the liquidation of the company in 2005 after it failed to pay a $6,000 invoice.
The city will invest Ft 1.5 billion in Styl Fashion Invest, obtaining a 25% stake in it. Styl Fashion Invest will then purchase all the assets of Styl Ruhagyár from the receiver for Ft 970 million, will take over all employees, and continue operations.
The state will give a further Ft 475 million subsidy to the new company for working capital. As a condition for state help, the company will have to keep all employees for three years and will be able to make staff cuts only with the city’s approval.
Szombathely will delegate three persons to the six-member supervisory board and appoint its chairman.
Source: Hungary Around the Clock
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