A Danish furniture manufacturer dedicated to sustainability is facing a critical financial crossroads. Despite progress in 2024, including nearly halving its annual deficit, the company continues to battle mounting debt, negative equity, and questions about its viability.
© Takt
Takt, founded in 2019 with the goal of redefining environmentally responsible furniture design and production, has recorded cumulative losses of DKK 34.7 million over six years. Its 2024 deficit stood at DKK 3.8 million, down from DKK 7.3 million the previous year. However, its equity remains negative, and its auditor has expressed "significant uncertainty" about future operations.
CEO Martin Qvist Lorensen, who assumed the role in January, insists the business is on course: 'It is a clear improvement. We are following the plan we have set.' Cost reductions have been implemented across operations, but Lorensen emphasises that the company has preserved its capacity for future growth.
A renewed focus is now placed on Takt's contract sales segment, which has shown steady growth since 2019 and is viewed as the business's most promising avenue. Recent deals with major Danish corporations and a new partnership with office interior firm Holmris B8 reflect strategic moves to strengthen this area.
In response to financial pressures, Takt has increased its debt from DKK 9.2 million in 2023 to over DKK 10.1 million by the end of 2024. Liquidity has declined to DKK 2.9 million, while a convertible loan exceeding DKK 3 million was secured to support ongoing operations.
While management remains confident in the brand's value and market position, the near-term focus is on securing survival through cost discipline, creditor support, and continued contract sales growth. Whether 2025 marks a turning point remains uncertain.
Source: www.wood-supply.dk