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Austria may buy DIY boss's art collection to save jobs
March 25, 2014 / 1:25 PM / 3 years ago

Austria may buy DIY boss's art collection to save jobs

VIENNA, March 25 (Reuters) - Austria may buy the Essl clan's modern art collection to bail out the family's home improvement business and save 4,000 Austrian jobs at risk, government ministers said on Tuesday.

At issue is whether the state will help prop up the Baumax group, which overextended itself with a push into eastern Europe, by acquiring a 7,000-piece collection including works by Oskar Kokoschka, Franz West, Hermann Nitsch and Cindy Sherman.

"If the conditions are defensible then I would be in favour," Culture Minister Josef Ostermayer said after a cabinet meeting, noting experts would meet next week to see whether the plan is feasible at a time of tight budgets.

"I think the state is prepared to play a part," Labour Minister Rudolf Hundstorfer added.

Company founder Karlheinz Essl told broadcaster ORF that proceeds from any sale could help save jobs in Austria, where 4,000 of the Baumax group's 9,000 staff are based. What happens with foreign units remained unclear.

"Every single country is under review. We will have to close one or two. We will see whether it comes to an insolvency there," he said.

Baumax has 158 outlets in nine countries as far afield as Turkey but ran into trouble when the financial crisis crimped demand for DIY supplies in eastern Europe.

Saving jobs is a top political priority in Austria, which has the lowest jobless rate in the European Union. (Reporting by Michael Shields, editing by Louise Heavens)

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