HIGHCON FILES FOR PROTECTION

Israeli digital cutting systems developer Highcon has filed for bankruptcy protection, and laid off most of its staff, as it faces liquidity issues and postponed orders, as a result it says of the US tariffs.

The move comes just 18 months after Highcon last restructured its business, when it also signed a deal with BHS to incorporate its equipment on the BHS corrugated lines, and despite what it said were strong orders from drupa. The global mega show saw Highcon release new cutters, with the company believing it was well placed to capitalise on the boom in folding carton  packaging.

Highcon said orders totalling some $10m have now been placed on the back burner by customers. Some 50 staff have been laid off, with 20 remaining to enable the company to continue functioning.

The company has been backed by two main shareholders; Benny Landa and another Israeli fund, Jerusalem Ventures. Its former chairman was Alon Bar-Shany, a well-known figure in Australia and New Zealand. He is now a non-exec director.

Founded in 2009, Highcon first appeared on the global print stage in 2012 at drupa, and has been a regular exhibitor ever since. It did have some ANZ representation in its early years, and for the last year with Kissel + Wolf, but has not achieved sales success here.