HUK 121, a division of the British private investment company Hilco Capital, has agreed to acquire Canadian office furniture manufacturer Inscape. HUK now owns a portion of Inscape.
On December 23, 12.6 million common shares—or about 88% of the company’s outstanding common shares—were deposited to HUK. Just $88,631 was the total amount of the consideration payable for those shares. Current shareholders have until January. 3 to tender their stock for 7 cents per share.
Inscape, which had been experiencing financial difficulties ever since COVID first appeared, urged stockholders to sell their shares to HUK earlier this month. The second quarter’s revenue of $8.3 million, a 14.3% decrease from the $9.7 million in the prior year, reflected a sharp decline in sales. Comparing this quarter’s loss to the second quarter of last year, the company’s loss increased to $7.9 million from $2.6 million. The business has a $14 million net loss for the entire year.
Inscape said reasons for its second quarter decline were “delays in the completion of certain projects, reduced average size of incoming orders and lower than expected order volumes related to a slower return-to-office observed throughout North America.”
“Second quarter fiscal 2023 was disappointing, as sales volumes did not achieve expected levels and certain orders were unable to be recognized within the quarter further diminishing revenue levels reported,” said Eric Ehgoetz, CEO.
Ehgoetz claimed that if the Hilco offer had fallen through, the business would have had trouble paying its debts.
Inscape reported that it entered into a loan agreement with HUK 116, a different Hilco subsidiary, in late October for the creation of a new $5 million demand secured credit facility. Inscape would make use of the facility to finance working capital as well as other business needs.
Systems furniture, seating, storage, and adaptable walls are among the offerings from Inscape. Since 1888, the company has operated.
News source: furnituretoday.com
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