Swedish sawmiller Rörvik Timber AB has filed for bankruptcy protection after declaring itself unable to pay debts.
The sawmiller, which hit the headlines in January when 11,000m³ of its sawn timber was washed off a ship in the English Channel, will have three months to reorganise itself and sort out debts with creditors.
Rörvik CEO Per Rodert told TTJ that the weak market combined with the fact that the company had increased sales in markets (southern Europe and north Africa) with longer payment terms had led to a squeeze on liquidity.
All Rorvik’s sawmills in southern Sweden are affected, but other operations and overseas units are unaffected.
Mr Rodert said the company had already reduced its production capacity from 950,000m³ to 565,000m³, losing 150 employees in the process, and would now aim to reduce its high inventory levels in a bid to return to profitability.
But he insisted the company would trade as normal through the reorganisation period.
