NORWAY - Herkules-backed NIG goes into administration

Herkules initially acquired Festival Engros in April 2007. A year later the company, which was re-branded NIG, purchased Tilbords as an add-on acquisition from the Kolderup family. The investor restructured the business last month in conjunction with the incumbent bank DnB NOR, in a deal that saw TilBords become a direct subsidiary of Herkules.

Meanwhile Festival Engros, a wholesaler of home and interior supplies, has been re-sold to the previous owners, Bernt and Frank Mykjåland. Alongside previous management and Handelsbanken the brothers have invested NOK 20m to restore the business.

It is expected that 15-16 people out of the 60 strong staff will be made redundant, largely as a result of the bankruptcy of its main client, Fryd, which accounted for nearly 40% of total revenues.

The chain of 32 interior shops went directly into administration. According to Herkules, a fire sale of Fryd was not considered as it was unlikely a suitable buyer would be found.

According to reports, Herkules injected a total of NOK 100m into NIG over the course of the investment.

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• Nordics
• Consumer