The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
(10 - 33) Manufacturing (26 - 27) Manufacture of electrical, electronic and optical products 27.9 - Manufacture of other electrical equipment 27.90 - Manufacture of other electrical equipment
165 jobs Number of planned job losses
Announcement Date
19 June 2025
Employment effect (start)
30 June 2025
Foreseen end date
30 June 2025
Description
G. G. Space, the Hungarian subsidiary of Italy-based Giovenzana International, laid off all 165 of its employees at the end of June. The production sites in Gyöngyös and nearby Gyöngyöstarján will be closed. The firm, a manufacturer of electrical products, has gone insolvent and will likely be liquidated.
Behind the bankruptcy are the ongoing court proceedings against the firm’s Italian owners, related to a massive tax evasion scheme. The European Public Prosecutor has requested a four-year prison sentence and a large-scale asset confiscation for the directors of the parent company.
Employees have complained that the Hungarian management avoided real communication with workers and repeatedly cancelled pre-arranged consultations. The Hungarian management countered that this claim was untrue, asserting that no consultations had ever been scheduled, so there was nothing to cancel. The workers organised demonstrations and assemblies, as they had not received any pay since May. Furthermore, they did not even receive their termination notices.
In late June, the trade union confederation Munkástanácsok pledged to support the workers. The aim is to ensure that the employees receive their back wages and the severance pay to which they are legally entitled.
Updated, 14/08/2025:
In early August, the Hungarian tax authority (NAV) placed the plant under criminal seal to prevent the further hollowing out of the facility by the company’s owners, who were sentenced by an Italian court to a suspended prison term of nearly two years and asset confiscation amounting to €5 million. An official from the union confederation Munkástanácsok commended NAV’s decision, saying that workers had been guarding the facilities and the movable assets for several weeks, fearing the owners would take away the remaining valuables.
According to the parliamentary representative of Heves county, the government has agreed to advance the unpaid wages owed to workers from the Wage Guarantee Fund in September. A union representative noted that the workers need transitional aid, because the Wage Guarantee Fund procedure will take considerable time.
Eurofound (2025), G. G. Space, Bankruptcy in Hungary, factsheet number 203052, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/203052.
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