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Debts of Danish design house deepen as bankruptcy estate swells

The debt tied to a Danish design house has surged to over DKK 120 million, ten months after the company was declared bankrupt in August 2024. Initially estimated at DKK 88 million, the claim has expanded significantly, with a large portion stemming from internal transactions within the Frantz Longhi group, several of which are also undergoing bankruptcy proceedings.

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According to a new report from the estate's trustee, Paustian A/S owes DKK 45.4 million to affiliated group companies, while simultaneously being owed over DKK 20 million by the same entities. Experts state that this kind of internal borrowing is standard practice in group structures to "optimise liquidity" and reduce reliance on third-party loans.

Though the original business failed, operations have resumed under a new entity, Paustian Design Est. 1964 ApS, which remains fully owned by Frantz Longhi. The future of creditor repayments from the bankrupt company remains uncertain.

Paustian, once a cornerstone of Danish design retail with a presence in Aarhus and Copenhagen, now maintains only its flagship store in inner Copenhagen following the closure of the Aarhus branch.

Source: www.wood-supply.dk

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