Holmbergs files for bankruptcy in Romania, citing unpaid debts and tax claims

Swedish safety systems manufacturer Holmbergs has filed for bankruptcy for its Romanian operations, abandoning a previously planned reorganisation, Profit.ro reported on June 2. The decision follows financial pressures, including unpaid receivables from its main client and unexpected tax liabilities.

Holmbergs Safety Systems, a global player with factories in Europe, the United States, China, and Hong Kong, attributed the move primarily to the insolvency of its key French client, SAS Teamtex. The Romanian unit is owed nearly EUR 1.3 million by the French firm.

The bankruptcy filing marks a shift from Holmbergs' earlier strategy, which involved only an insolvency request.

Compounding the financial difficulties, Romanian tax authorities recently established additional debts amounting to RON 1.3 million. Meanwhile, operational costs remained elevated due to a relatively high headcount despite a shrinking order book.

The Romanian factory in Pașcani, previously operated by Te-Rox Prod, was acquired by Holmbergs in 2020 from Doina Cepalis, a prominent Romanian entrepreneur. At the time, the facility was one of Europe's major manufacturers of child car seats, covers, and seat belts.

Business performance has since deteriorated. Revenues fell to RON 49.2 million in 2023, the lowest since the company's establishment. Net profit dropped by half to RON 0.4 million, while debts stood at nearly RON 6 million, despite a decline compared to earlier years.

As of March 31, 2025, the company reported debts of around RON 4 million to the state budget. At the time of acquisition in 2020, the factory posted RON 70 million in revenue and a net profit of RON 3.8 million, though it carried debts of almost RON 21 million. Since then, the workforce has decreased from 550 to 430 employees.

(Photo source: Kenishirotie/Dreamstime.com)