EMCC European Monitoring Centre on Change

CM Celje

Company/Organisation:
CM Celje

Geographic Location

Country: Slovenia
Region: Savinjska; Slovenija
Location of affected unit(s): Celje

Company

Sector: Construction
Construction
41.2 - Construction of residential and non-residential buildings
Number Employed: 275

Employment Effects

Announcement Date: 24-10-2012
Planned Job Reductions min: 275
Planned Job Reductions max: 275
Type of Restructuring: Bankruptcy
Employment Effect Start: 24-10-2012
Foreseen End Date: 26-10-2012
Direct Dismissals: 275

Additional Information

Construction company CM Celje, based in the Savinjska region, has filed for bankruptcy and as a result 275 employees will lose their job.

The cause of bankruptcy is the substantial crisis that has hit the construction sector in Slovenia. The company, which was in the process of Compulsory Settlement for quite some time, has not been able to pay the employees’ wages for months. Bad managerial decisions and the uncertainty that has prevailed in the last year have left the company with no other options. They have no new contracts and the banks are said to be unwilling to provide new credit.