Papu Design Ltd has filed for bankruptcy. A group of owners and investors has submitted an offer to purchase Papu Design’s business from the bankruptcy estate, with the intention of continuing operations as normal.
On October 1, the Board of Directors of Papu Design Ltd filed for bankruptcy. The decision was made when the company was no longer able to meet the payment obligations set out in its restructuring program.
The company entered restructuring more than a year ago, in the summer of 2024, after experiencing significant financial challenges. The COVID-19 pandemic, the subsequent war in Ukraine, inflation, and rising interest rates affected both costs and consumer behavior. As a result, revenue growth did not materialize as anticipated, and profitability weakened. Combined with excessive inventory and debt burden, the company was driven into difficulties.
During the restructuring process, the company carried out significant adjustment measures, but operations were not turned profitable quickly enough. Challenges included, among other things, unfavorable agreements made in the past and the fact that during restructuring, obtaining additional financing or extended payment terms was not possible.
Papu Design’s shareholders still see potential in the business. Papu is well known in Finland, has a loyal customer base, and a strong mission based on responsibility.
“Of course, the situation is unfortunate for the current company, but we also see this as an opportunity for a fresh start for the brand. We have never lost faith in Papu’s potential for profitable growth,” says Jussi Kurkela, Chairman of Papu Design’s Board of Directors.
Therefore, a group of shareholders, together with a few other investors, has submitted an offer for the company’s business operations, with the aim of continuing activities as seamlessly as possible under a new company.
“The first products launched this autumn have been popular, and new products are already eagerly awaited. We hope to get operations started soon under the new company and launch the autumn collection for sale. Papu deserves to continue its beautiful story,” says Papu Design’s founder Anna Kurkela.
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