Shoemaker Tisza Cipogyarto to be wound up

2009-09-03



The Hungarian shoe producer Tisza Cipogyarto Termelo es Kereskedelmi is to be liquidated due to a dramatic decline in sales during the financial crisis, reported Napi Gazdasag. The company, which most recently produced protective and military boots, registered sales revenues of HUF 282m (€1m) in 2008, down from the HUF 547m (€2.1m) reported in 2007. Also in 2008, the company accumulated net losses of HUF 131m (€510,000).
The majority of the workforce was laid off in May 2009 with 30% of former employees transferred to Turi Cipo, the Mezotur-based subsidiary of the parent company Tisza Cipo.
On completion of restructuring, Tisza Cipo plans to launch the production of luxury shoes at Tisza Cipogyarto’s plant in Martfu, central Hungary. According to the company’s executives, production at the facility could be resumed by the end of the year if market conditions continue to improve as expected.
Tisza Cipo sold its Tisza shoe brand and the license to produce Tisza shoes in 2003 to the Siofok-based company Clash. Due to the high level of brand awareness among clients, Clash is not currently experiencing any significant decline in sales.