The insolvency request is filed in a context in which, as per public data, the company’s turnover dropped by one-third to EUR9.9 million – the lowest level since its setup in 2007-2008. Its profit halved in 2023 to only EUR84,000. However, the company has constantly recorded profit over the 17 years of functioning. Its turnover peaked at over EUR20 million during the 2013-2018 period and was already dropping in 2019 before reaching EUR14.5 million in 2020 at the time of the takeover.
The company has recently explained its difficult situation, arguing that it has become increasingly difficult to be competitive, as energy, transport, and labor costs in Romania have increased exponentially in the last 4 years. Regulations and certifications in the market added more pressure.
“Indeed, the activity has decreased in recent years. The circumstances that led to the decrease in activity are, in fact, the capacity of the market in which we operate as well as other external factors. More precisely, until 2021, Te Rox worked exclusively for a single client from France, which in turn was sold to an investment group, and the approach of the new owners was much different than before,” stated company officials.
Te-Rox Prod was one of the most successful entrepreneurial businesses in Romania, set up in 2007 to produce child car seat covers and seat belts as a subcontractor for the French company Team Tex. The company operates three factories, in Pascani, Roman, and Rugioasa, in northeastern Romania. The three units employed 430 in 2023, compared to over 700 during 2012-2019.
After being acquired by Sweden’s Holmbergs, Te-Rox was renamed Holmberg Safety Systems and kept its core activity, namely, the production of covers and harness systems for child safety seats. Holmbergs’ plan was to turn the Romanian firm into a major production hub from where the products will reach the markets of Europe, the US, and Asia.