A renowned Danish design company has declared bankruptcy for the second time in a year, leaving debts of DKK 37.5 million. Most of the liabilities are simple claims, including unpaid suppliers, spread across 30 to 40 creditors.
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The company, Paustian's, assets are estimated at DKK 3.6 million, with only DKK 213,000 recovered from a final clearance sale at its Copenhagen flagship store. Remaining inventory will be sold at auction to satisfy creditors. Trustee Anders Bendtsen confirmed that around ten potential buyers have expressed interest in acquiring the Paustian brand.
Founded by Frantz Longhi, Paustian previously underwent reconstruction in 2004 after a bankruptcy that left debts exceeding DKK 120 million. Despite a relaunch and new investment, the design house struggled financially and could not recover.
Paustian's collapse underscores the vulnerability of high-end design retailers to economic pressures, even with strong brand heritage. The bankruptcy threatens both supplier relationships and the continuity of a historic Danish design brand, raising questions about the long-term stability of niche design firms in a competitive market.
Source: www.wood-supply.dk
