A second bankruptcy sale of furniture from a Danish retailer that went bankrupt in October saw lower customer turnout than expected, despite initial success in selling 35-40% of the inventory. Thousands of customers attended the first sale, prompting the trustee to continue sales directly to private buyers to maximise returns.
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In October last year Bolighuset Werenberg went bankrupt. Curator Morten Elbrønd stated that while revenue from the latest sale was "significantly less" than the first, the overall proceeds remained close to the highest offer received when attempting to sell the inventory to a single buyer. 'It also shows that the bankruptcy sales were the right way to do it,' he said, noting that half of the stock remains unsold.
Originally, the plan was to sell the entire inventory to a single buyer, but no furniture retailer or investor was willing to meet a reasonable price. As a result, the trustee opted for direct consumer sales to reduce losses for creditors. The largest creditor, Danske Bank, is owed DKK 25 million, while total debt at the time of bankruptcy stood at DKK 41.6 million.
The retailer, a 60-year-old family-owned business, declared bankruptcy in October following financial difficulties. The company had posted losses exceeding DKK 18 million earlier in the year, with management citing the economic downturn and a failed digital transformation as key factors. Owner Torben Werenberg stated that despite efforts to turn the business around, the company was unable to secure 'sustainable and profitable operations.'
The trustee will now engage in discussions with creditors to determine the next steps in liquidating the remaining assets.
Source: www.wood-supply.dk