Elmo reconstruction finalized successfully
15 January 2009Elmo Leather decided on December 12, 2008, to reconstruct and refinance the company with support of banks and suppliers and in compliance with the Swedish law. The reason was the dramatic decrease of more than 50% in incoming orders from August compared with last year.
After a hardworking month the reconstruction has been finalized and the reformed Elmo Leather has been up running since January 13, 2009. The outlook for 2009 for the European tanning industry remains tough and, therefore, it is a big advantage for Elmo Leather AB to start the New Year with stable finances and a cost structure adapted to present market situation. As a part of the reconstruction the ownership of the company has changed. The two former owners Nalle Johansson, CEO, and Anders Bengtsson, CFO, remain as shareholders. Anders Johansson, VP production and Thomas Gregor, VP sales & marketing, are new shareholders. The employees and the management of Elmo Leather are highly motivated and are looking forward to maintaining the supply of high quality leather to customers. Elmo Leather AB say they are well prepared to manage the challenges ahead and to secure long-term business with their customers in a professional way.
