An Innovative Company Now Files A Surprising Bankruptcy

An innovative company now files a surprising bankruptcy after considering all strategic alternatives, triggering a default on its debt.

Shapeways has stopped operating and has shut down all its subsidiaries in preparation for its assets to be auctioned off.

Shapeways is a 3D printing company that served more than one million customers by producing more than 21 million parts using 11 different technologies and 90 different materials and finishes since it was founded in 2007.

“On July 2, 2024, after considering all strategic alternatives, Shapeways Holdings Inc. ceased operations and filed a voluntary petition for relief…under the provisions of Chapter 7 of Title 11 of the United States Code,” said a court filing.

The filing will trigger a default on the company’s “$669,500 secured promissory note dated June 10, 2024, entered into with 3DP Custom Manufacture LLC as lender, which results in acceleration of the company’s obligations under such instruments,” it reported.

In addition, the company’s executive team and board have resigned.

As of the filing date, Shapeways no longer has any employees or directors.

The sale of its assets and dispersal of any proceeds will be handled by the bankruptcy court.

“As a result of the bankruptcy filing, a Chapter 7 trustee will be appointed by the Bankruptcy Court and will administer the Company’s bankruptcy estate, including liquidating the assets of the Company in accordance with the Bankruptcy Code,” the filing says.

“Once a Chapter 7 trustee is appointed, an initial hearing for creditors will be scheduled, and the Notice of Bankruptcy Case Filing will be sent to known creditors.” 

The brief Chapter 7 bankruptcy filing did not include a list of creditors or a range of assets and liabilities, reports TheStreet.

For more bankruptcy news and updates like this, opt-in for push notifications.

Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy

Other Economy News Today

Market News Today - An Innovative Company Now Files A Surprising Bankruptcy.
Market News Today – An Innovative Company Now Files A Surprising Bankruptcy.

An essential company now files a surprising bankruptcy after miscalculating demand for its inventory after the Covid-19 pandemic.

Supply Source Enterprises, a leading provider of branded and private label cleaning products and personal protective equipment, on May 21 filed for Chapter 11 protection to seek a sale of its assets.

Supply Source brands include The Safety Zone and Impact Products.

The Guilford, Connecticut debtor listed $50 million to $100 million in assets in its petition and $180 million in funded debt, which includes $80 million owed on a term loan credit facility, $60 million owed on an asset-based loan, and about $40 million in unsecured debt.

Before the Covid-19 pandemic, which generated huge demand for cleaning supplies and personal protective equipment in 2020, Supply Source had been consistently profitable with stable single-digit growth, according to a declaration from the debtor’s Chief Restructuring Officer Thomas Studebaker.

Once the pandemic hit in 2020, the debtor had substantial growth due to high demand for safety, hygiene and sanitation products

The debtor reported adjusted Ebitda of $93 million in 2020 which was nearly a 300% increase over the previous year.

However, the company’s financial performance deteriorated in subsequent years.

Based on the unprecedented demand in 2020, the company commissioned an industry study in early 2021 that concluded that the Covid-19 pandemic would fundamentally change the cleaning supplies and protective equipment industry and market for its products.

The study also estimated that the company’s Covid-related growth would likely be sustained through 2024.

In contemplation of continued customer demand at elevated prices, based on the study’s data, the debtor increased purchases of inventory even though the costs were higher due to supply chain constraints during the pandemic.

Despite the study’s assurance that growth would be sustained for years, the pandemic’s positive effect on the market faded by the end of 2021 and demand for PPE decreased to normal rates, reports TheStreet.

The reduction in demand led to large amounts of excess inventory that the company could not sell in the same quantities and prices.

The excess inventory forced the debtor to secure additional storage space, which increased storage costs.

These factors tightened the company’s liquidity and led to a decline in annual revenue in 2023 by 26% from 2022, resulting in a negative 2023 Ebitda of $13 million.

The debtor’s liquidity issues led to it being overdrawn on its asset-based loan facility by $30 million.

The ABL lender in February 2024 swept the debtor’s bank accounts, further impacting the company’s financial distress.

For more news and updates like this, opt-in for push notifications.

Also Read: This Massive Mall Retailer Is Now Closing In California

Market News Published Daily 📰

Market News Today - An Innovative Company Now Files A Surprising Bankruptcy.
Market News Today – An Innovative Company Now Files A Surprising Bankruptcy.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Our readers can now donate $3 per month to support independent journalism.

For daily news and updates on your favorite stories, opt-in for push notifications.

Follow Frank Nez on X (Twitter)Instagram, or Facebook.


Support Independent Journalism ✍🏻

Support independent journalism for just $3 per month!

Your contributions help power Franknez.com as the cost of widgets and online tools continue to rise.

Thank you for your support!



2 Comments

  1. Frank Nez

    Leave your thoughts below.

  2. Frank Nez

    For more news and updates like this, opt-in for push notifications.

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2024 Franknez.com

Theme by Anders NorenUp ↑