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CHS Austria declares bankruptcy

CHS Austria declares bankruptcy

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CHS Electronics Ges.m.b.H., the Austrian subsidiary of Florida-based distributor CHS Electronics, has declared bankruptcy, according to a report yesterday by the Austrian Press Agency.

The report cited the Kreditschutzverband, a Vienna-based organisation that verifies company creditworthiness and represents them in bankruptcy proceedings, as saying that last-minute attempts to save the company have failed. A request to close the company has already been submitted to the Vienna bankruptcy court, the Austrian Press Agency report said.

An employee with the Kreditschutzverband, reached late this afternoon, confirmed that the company has been in bankruptcy proceedings since early November, but could give no further information.

It is not yet clear whether the subsidiary can expect financial help from its parent, which has had some financial troubles of its own this year. In March, CHS had to revise its earnings for fiscal 1998 downward by about $US45 million after the company was found to have overstated its earnings. That triggered several class-action lawsuits against the distributor of microcomputers, peripherals and software.

In May, CHS also got a $50 million cash infusion from Computer Associates International.


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