Dutch Paper Producer Crown Van Gelder Files for Bankruptcy

Crown Van Gelder said its financial problems are the result of a combination of factors, especially continually rising energy and raw materials costs.

Jan. 25, 2023 - The District Court of Noord-Holland has declared specialty paper producer Crown Van Gelder B.V. bankrupt. Despite excellent financial performance in 2021 and 2022, the company realized it would no longer be able to meet payment obligations in 2023 and was forced to file for bankruptcy.

According to the Dutch paper producer, the company's financial problems are the result of a combination of factors, especially continually rising energy and raw materials costs.

"Despite the positive operating result for financial year 2022 and persistent efforts to do so, Crown Van Gelder has not been able to resolve a liquidity shortfall caused mainly by increased costs (especially energy and raw materials) and a sudden drop in orders resulting in unusually long standstill of production," the company said in a press release. "Secondly, the company is uncertain about market developments in the near future."

Miklas Dronkers, CEO at Crown Van Gelder, commented, "In 1896, the first paper rolled off the machine in Velsen. Innovation has always been at the heart of our paper mill. I am very proud of our employees who are always looking for innovation and opportunities. Crown Van Gelder has changed the world of paper: with our globally acclaimed inkjet paper Crown Letsgo and our sugar beet paper Crown Native. It hurts that our beautiful independent paper mill has been confronted with this situation."

Crown Van Gelder operates a paper mill in Velsen-Noord in the Dutch province of North Holland, the Netherlands. The mill has two paper machines and produces specialty papers for food packaging and luxury shopping bags, along with various grades of inkjet paper. The company has about 250 employees. Over 90% of the mill's paper is sold to customers outside of the Netherlands.

The managing board and bankruptcy trustees, Mr. R. Mulder LLM (Pot Jonker Advocaten) and Mr. A.H.J. Dunselman LLM (Schenkeveld Advocaten), are in deliberation with several interested parties with respect to the possible continuation of the activities in the future.

SOURCE: Crown Van Gelder