Aluminum profile company Profilgruppen is being forced to close its operations in Poland after an acquisition bid for the leased profile business was rejected. The company is required to vacate the facilities no later than early January.
“There is a small theoretical chance that those responsible for the bankruptcy proceedings in Poland will realize that our offer is highly favorable for the creditors and come back with a proposal before our winding down makes it impossible for us to restart operations. At present, however, we are focusing on finding other alternatives and minimizing the loss,” the company stated in a press release.
Profilgruppen began a process at the start of the year to acquire a Polish business facing serious difficulties.
“Investments in this opportunity have already begun, which means there is a risk of losing the costs incurred if it cannot be completed. The acquisition of assets is relatively large for Profilgruppen, and the biggest risk is that the rebuilding process will be slower than expected, that the assets cannot be fully utilized for several years, and that the business will require further investments in the form of startup costs and additional resources,” Profilgruppen wrote in February.