Mediashop cuts workforce after insolvency and plans relocation

Teleshopping broadcaster Mediashop is being completely restructured after its takeover by One Spot GmbH, ORF reported. The company plans to move from Neunkirchen to a new location and reduce its workforce from 163 to about 40 employees.

One Spot took over the insolvent company on June 1. Negotiations on a new rental agreement are under way, the new owner said on Thursday.

Mediashop aims to become more international and reach annual revenue of 120 million euros in the medium term. Since the takeover, its television presence has expanded from 16 to 50 channels. The company currently operates in Austria, Germany, Switzerland, Hungary and Slovakia, with Hungary, the Czech Republic, Slovakia and Romania identified as priority markets for expansion or reactivation.

The company also plans to reorganise its logistics and is examining the extensive automation of a logistics location.

Mediashop said its current operations are generating more money than they consume. It expects revenue of about 40 million euros in the current financial year. The planned relocation would also significantly reduce its office space.

The company will continue to focus on products whose benefits can be explained and demonstrated. Television will remain an important sales channel, increasingly linked with online platforms, social media and other digital distribution channels.

Mediashop filed for insolvency in the spring, with debts estimated at about 55 million euros. The company announced in April that it was to be rescued by a group of Austrian investors.