A Danish home and furniture retailer has released its first financial report following its bankruptcy, showing a loss of 5.2 million DKK and a negative equity of 1.2 million DKK. After the bankruptcy, the company, Hanstholm Køkken, retained only its independent dealers and showrooms in Denmark's two largest cities.
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New CEO Majken Pape, who took office in June, noted that the losses were anticipated, primarily due to costs associated with fulfilling orders from customers who pre-paid before the bankruptcy but had not received their kitchens. Pape explained that around 140 affected customers had their orders included in the bankruptcy estate, but the new owners have ensured they are compensated, viewing this as a long-term investment to maintain the brand established since 1968.
The report covers a 14-month period from the company's formation on February 10, 2023, to April 30, 2024. The negative equity reflects the significant loss incurred, despite a previous equity of 400,000 DKK and a subsequent capital infusion of 3.6 million DKK.
Pape also highlighted the challenges posed by a generally weak kitchen market, stating that the company faces dual setbacks—recovering from bankruptcy while navigating a tough industry climate. However, she remains optimistic about future improvements, stressing the importance of investing in the business to reach the next level, supported by the strong financial backing of the new owners.
Source: www.wood-supply.dk