In
STRAX European distribution has been successful and profitable for several years built on long-standing relationships with many of the largest telecom operators and retailers in the region. During and after Covid-19 the core accessories business was negatively impacted, causing strain on both cash flows and liquidity, key considerations to bring in an additional investor. In this case it was also an investor that was committed to bring on additional profitable business in logistics services.
The European distribution business faced significant headwinds in the fall of 2023 resulting in a negative sales development and losses, as have been communicated in financial reports. From mid-year 2023 the company engaged in a business activity procured by the new investors which both tied up significant working capital and resulted in losses. Furthermore,
Numerous attempts have been made to find a viable way for
As a result,
For the
There are intercompany balances between
“It is extremely disappointing and sad to see a business that has run well and profitably end up like this after close to 20 years due to recent events. We have for many months done all in our power to find a way to save the business of
© Modular Finance, source