Kristoffersen Møbelfabrik, a historic furniture manufacturer founded in 1945 in Denmark, declared bankruptcy at the start of November. However, all hope is not lost for the company, which is now seeking a new owner to possibly restart operations.
Photo: Dreamstime.
Jens Jacob Dühr, the lawyer appointed as trustee for the bankruptcy estate, spoke to Fyens Stiftstidende, expressing hope that external investors could help revive production. Dühr emphasised the urgency of finding a buyer swiftly. 'Existing clients are unlikely to wait for months to see if the company can recover. A business that remains active is worth more, both in terms of its assets and the machinery. The longer the process drags on, the harder it becomes to achieve a good sale price,' he said.
Dühr pointed out that acquiring an empty warehouse or obsolete machinery would not be as valuable as taking on an operational business capable of generating income. The aim is to sell the entire business as a going concern, rather than in parts, to attract a buyer interested in continuing production.
The trustee hopes for a resolution regarding the factory's future before the end of the year. This comes after several years of financial difficulties. In 2023, the company reported a loss of 1.5 million DKK, following a 0.8 million DKK deficit in 2022.
The company's financial statements also noted that its overdraft facility had been fully utilised. The management report from August raised serious concerns about the factory's long-term viability, revealing that discussions with creditors and banks were ongoing to secure temporary payment deferrals. Management expressed optimism that these extensions would allow the company to continue operations.
The trustee is now pressing for a sale that could sustain the business. 'Selling a company with an active revenue stream is always more attractive,' Dühr stated, underscoring the importance of quick action to maintain the factory's operations.
Source: www.wood-supply.dk