TXM S.A. in restructuring it limits the scope of activity
TXM recorded a significant decline in turnover in the first quarter compared to the previous year. Estimated value of consolidated revenues from sales of goods realized on continuing operations by the TXM Group in the first quarter of this year. amounted to PLN 32 million, which means a decrease of 50% year on year.
The trade restrictions introduced do not improve the situation. The company plans to close about 40 branches, which is 18% of the network in its current range. In addition, TXM held talks with employee representatives to reduce remuneration, which resulted in the signing of an agreement on reduction of remuneration by 20%.
The media also informs that the company has applied for government assistance under the anti-crisis shield, however it may not receive it due to the formal requirements of the application.
TXM, like other entities undergoing restructuring, may have bigger problems than other businesses due to the limited access to government assistance. In addition, suspension of assistance to entities for which bankruptcy petitions have been filed or the opening of restructuring proceedings can be a dangerous tool in the hands of contractors.