Former Herkules-backed Tilbords facing insolvency

Nicole Tovstiga
20 February 2018

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Formerly backed by Herkules Capital, Norwegian kitchen and homeware design retailer Tilbords is at risk of insolvency, as it recorded losses of NOK 60-70m just three months after being acquired by Kitch'n.

Herkules sold Bergen-based home interior retailer and wholesaler Tirag, which owns the retail franchise Tilbords, to privately owned kitchenware supplier Kitch'n in November last year, after a 10-year holding period.

The company is expected to post a loss of NOK 60-70m for 2017, leading to a significant deficit, according to Norwegian local media reports, which cited Kitch'n CEO Odd Sverre Arnøy from a press release.

Tilbords shops were said to be open for business, but the website has been closed down.

Herkules invested in the company via its Herkules II vehicle in April 2007. The firm did not return requests for comment.

Established in 1987, Tirag is headquartered in Bergen, where it operates its warehouse. The retail chain consists of around 150 stores across Norway that are owned by independent franchisees. It posted a turnover of NOK 302m in 2016.

Tirag is not the first Nordic company to experience issues shortly following a period of private equity ownership. Altor-backed OW Bunker declared insolvency in November 2014; the company was floated by Altor in March 2014, listing at DKK 175 per share.