According to local media the Elan Snowboard Factory has filed for bankruptcy.
Located in the Austrian town of Fürnitz, the factory is responsible for production of brands like Capita, Arbor, Bataleon, Lobster and Dinosaurs Will Die. Currently the plant employ’s approximately 78 people and is suffering from heightened costs of raw materials and the loss of OEM production assignments.
The situation apparently became unmanageable after the factory’s Slovenian parent company refused to come to the rescue. Der Standard, the Austrian newspaper, reports that debts are as high as €8.7 million and that the banks involved were no longer willing to provide the necessary guarantees. Back in 2011, the plant’s turnover was up by 5.5 percent to €18.25 million, but with an operating loss of €1.5 million. In 2012, total sales plummeted to €13.75 million, whereas the operating costs remained more or less stable.
Brady Stoddard, Sales Manager for Rampion, the Canadian distributor for Bataleon and Lobster explained that this was something they had seen coming. “Lobster has already moved production and we are currently weighing options for Bataleon. We should have a new manufacturer in place soon”, says Stoddard. “It’s frustration and disappointing as we only moved production to Elan around three years ago. At one point this factory was producing one quarter of the worlds snowboards.”