A leading manufacturer now declares an unexpected bankruptcy after partnering with a Chinese company, sources report.
The manufacturer, which opened in 2013, has been a pioneer in the LED lighting space.
And, while Rohinni may not be a household name, it has been a leader in its space, reports TheStreet.
The company’s mission led to a 2019 partnership with BOE, a Chinese company that called itself “a global leader in semiconductor display industry as well as an IoT company providing intelligent interface products and professional services for information interaction and human health,” according to its website.
It was a deal that was supposed to help Rohinni grow, which may have led to its downfall, says the outlet.
“This joint venture will bring Rohinni’s market-ready technology which is three to five times quicker than traditional pick-and-place processes, capable of placing 50 die-per-second (dps) with 10 micron accuracy at 99.999% die yields to consumer products,” the companies shared in a press release.
However, that proved to be the wrong bet for Rohinni as demand tailed off quickly in China, where the company was required by the terms of the deal, to do most of its business.
The company filed for Chapter 7 liquidation with the Eastern District Court of Washington.
The company reported a whopping 96% drop in revenue in 2023, according to the court filings.
After its abrupt closure, Rohinni reported $5 million in liabilities and $40.4 million in assets, which sounds like a company that should still be solvent.
Unfortunately, many of their assets are tied to exclusive-use agreements with a Chinese joint venture company.
The bankruptcy court will have to decide what happens to the over 100 patents the company holds, many of them jointly with BOE.
Rohinni’s deal with its Chinese partner limited its ability to sell off some of its assets to raise cash.
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Also Read: This Popular Mall Retailer Is Now Closing 150 Stores
Other Economy News Today
This massive cosmetics company now closes in the US as it ceases operations following global financial troubles, sources report.
The Body Shop announced that all of its locations in the United States had shut down as the US wing of the company had ceased operations.
March 1 marked the last day of The Body Shop’s operations in the US, according to a company press release.
This retailer had over 60 locations across the country in December 2023, according to ScrapeHero.
The shock closures were announced with the news that The Body Shop Canada had entered a restructuring process
Its Canadian wing shared that this branch of the company had filed a Notice of Intention to Make a Proposal with the Bankruptcy and Insolvency Act.
All of the country’s 105 stores have currently remained open but 33 are set to shut.
These 33 stores are undergoing liquidation sales and the Canadian website is no longer accepting online sales.
The restructuring process also means that the retailer has stopped accepting gift cards, will not sell new gift cards, or provide refunds, according to CBC News.
Locations of these closing stores include branches in Toronto, Ottawa, and Calgary.
The Body Shop was acquired by AURELIUS GROUP in December 2023 and Alvarez & Marsal Canada Inc. was appointed as the Proposal Trustee.
This comes as The Body Shop plunged into financial trouble in its home country, the United Kingdom, reports The-Sun.
The company collapsed into administration on February 13 and administrators deemed the brand’s current portfolio “no longer viable” after “years of unprofitability,” according to The Sun.
Dozens of UK stores were immediately shut and more locations are expected to go.
Around 270 head office jobs in the UK will be cut but The Body Shop did not reveal how many jobs had been lost in North America.
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Also Read: Clothing Retailer Now Makes Painful Decision To Close All Stores
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