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Indebted Food Company, Findus ever-nearer bankruptcy - press reports
Thursday, 02 August 2012
it is a household name in the Swedish food sector but it does not seem
to be selling as expected. As a result, large debt and weak revenues is
pressing the food company Findus and thus pushing it to the rear.
According to Swedish business daily, Dagens Industri, Findus owned
since 2008 by British private equity firm, Lion Capital, which bought
the company then for Skr13.2 billion, of which as much as Skr8 billion
was borrowed money in now having financial drought an could seek
bankruptcy protection.
The company has 6,000 employees, including 900 in Sweden. Every year
Findus produces approximately 345 000 tons of cooked and ready frozen
and fresh food. The company operates in Scandinavia, France and Britain.
When the market became increasingly worrying, Findus became pressed
further. in 2010 Findus went back Skr1.7 billion. In the current
situation the company is said to be stuck with debt of Skr4 billion,
according to the paper.
When one of the Findus lenders dropped out last spring rather private
equity firm Triton stepped in and took over the debts. The conflict
between the owner Lion Capital and the new lender Triton about Findus
rescued has continued. In June, Triton would have offered a bid of Skr3
billion to rescue food producer, according to Financial Times. But the
majority of the lenders turned down the offer and rallied behind the
Lion Capital, which pumped in Skr1.6 billion in the company.
By Scancomark.se Team
