Buhrs enters insolvency
Added: 20/08/2010 Reporter: Michael Green
As part of a technical financial restructuring process Buhrs Mailing Solutions BV (holding company), Buhrs-ITM GmbH and Betron GmbH were brought into insolvency proceedings earlier this week.
In a statement on the Buhrs website the administrators stated that over the next two weeks Buhrs will operate as much as possible under normal conditions. They went on to say that Buhrs is making every effort to avoid delays in delivery however apologised in advance for any delays that might occur.
Buhrs had already introduced and implemented a global reorganization program that began in 2008 and was continuing. This program has lead to significant fixed costs reductions and made the company much more flexible, but on it's own it has not been enough.
Buhrs currently employs around 250 people which is down significantly from a level of 360 people prior to the reorganization program.
In 2008 and 2009 Buhrs generated substantial losses, but the outlook for 2010 year-end was looking as if rigors would be achieved. Order intake YTD 2010 compared to same period last year is believed to be up 25%.
Buhrs is now in the process of strengthening the capital of the company and is in discussion with private equity firms.
