Prague - Hundreds or even thousands of suppliers of Czech forestry giant Less are in serious trouble. The firm is on the brink of insolvency and owes them hundreds of millions of korunas, warned Miroslav Svec from a Czech forestry association.
The fall of Less and its daughter companies will increase the unemployment rate in the countryside and damage the Czech forestry sector, said Svec.
According to the association, at least half of the 4,500 creditors of Less are small entrepreneurs and self-employed workers subcontracted by the firm.
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"For a significant part of them, the insolvency of the Less & Forest company will have absolutely fatal consequences and will lead to further drain of qualified workforce away from the forestry sector," said Svec.
Large creditors such as Raiffeisenbank or the Agrofert group will simply see their annual profits decrease by tens of millions, but the very livelihood of hundreds of small entrepreneurs will be under serious threat.
"The total volume of obligations to independent workers can be estimated at many tens or hundreds of millions of korunas," added Svec.
The problem is especially acute in the zones where Less & Forest manages territorial units of state-owned forestry firm Lesy CR. Out of the total number of 117 units, 32 were administered by Less in 2012.
Svec also warned that many small entrepreneurs may fail to register their claims in time.
So far, only 194 subjects have filed their claims with the Prague regional court. The deadline is November 1, only a few days away.
