Specialist substrate manufacturer Neschen has filed for self-administered insolvency proceedings after struggling with debt repayments.
The process allows a company to undergo a formal restructuring and insolvency process through the court system. If it meets certain requirements, the court must allow it three months for the process under German law.
The managment team remains in charge of the company but insolvency specialist Dr Bettina Breitenbucher will work with chief executive Henrik Felbier as a chief revenue officer. The management will work together with creditors and the works council to draw up a restructuring plan.
In a statement Neschen said that the administration would not affect the operative business of the company and European distribution would also not be affected.
Felbier said in the statement: “As we have already managed to increase our earnings we now want to use the insolvency to reduce the company debt.
“We want the company to emerge from the insolvency stronger.”
Nottinghamshire-based ArtSystems became the UK exclusive wholesaler this month following the administration of parts of Paperlinx earlier this month.
ArtSystems managing director Steve Hawker said he was confident that it would be business as usual after speaking with senior management at Neschen.
“We are still placing orders and receiving deliveries as normal. Their announcement of self-administered insolvency will not affect ongoing supply of Neschen product here in the UK. We understand this is a necessary step to allow them to complete their restructuring and expect Neschen AG to emerge a stronger company at the end of the process.
"I do trust Henrik and I think he’s a very capable man.”
ArtSystems sells wide and super-wide format printers, media and ink for a number of brands, including HP, Canon and Neschen, which produces and markets innovative coated self-adhesive and digital print media worldwide, together with their processing machines and presentation systems.
Hawker, who was part of a management buy-out 20 years ago, became the sole shareholder six years ago. In that time he said he had grown turnover from £17m to £32m and now employs 65 people, with eight joining within the past three months.
He said: “Digital print is where it’s at, we’ve been enjoying growth over seven years. With Neschen we’ve seen the business double in just 12 months. The business is very innovative, particularly with the latex and solvent space.”
Products include Easydot (pictured) an easy-to-apply product that applies adhesive through rows of tiny dots, and photographic mat Print'n'Walk, launched this month. This allows for a quicker turnaround because it does not require laminating.
Hawker added: “They are very good products which you can’t get anywhere else.”
