DENMARK –Tvilum, one of the largest global RTA furniture manufacturers, filed for bankruptcy on February 2 ceasing production in its plants in Farvang and Kjellerup, Denmark.

Over the past days the appointed curators held talks with several potential buyers reaching an agreement with a group of local Danish investors consisting of the furniture company Viking Trading, current Tvilum CEO Torben Porsholdt and the Kristiansen family (the company founders). The investors, which have taken over the ready to assemble furniture manufacturer, have agreed no to disclose the purchase price.

According to reports from Danish media, the transaction includes the locations in Farvang and Kjellerup. The investor group also has the option of acquiring the Tvilum subsidiary in Szczecinek, Poland, at a later date. Torben Porsholdt will continue to lead the company as CEO, he had joined Tvilum about two months ago succeeding Andrew Long. The Kristiansen family which had sold Tvilum 17 years ago will not play an active role in the company, despite the renewed participation, explained the family’s spokesperson Poul Kristiansen.

“In the family we are naturally happy to be part of the solution, because Tvilum is an important workplace in Faarvang and Kjellerup. We are particularly pleased that, with Viking Trading, we have gained a major investor who knows Tvilum’s original value and business base, which can therefore ensure the best possible basis for the future of Tvilum”, said Poul Kristiansen, whose family founded Tvilum in 1965.

“I have known Tvilum for many years, and I have great respect for the strong company that has been built up. It has not been pleasant to follow the disappointing results of the recent years in Tvilum, neither for the furniture industry nor for the local community. Therefore, it was natural for me to go actively and become part of Tvilum’s future when the opportunity presented”, says Birger Christensen, CEO of Viking Trading.

In 2016 Tvilum reported sales of DKK 1.26 billion (USD 207 million).