Financial pressure forces Norwegian tannery to close
26/05/2010
Chief executive, Johannes Borge, who represents the fourth generation of his family to run the operation since it opened in 1889, called in administrators at the end of April, saying that he had been optimistic that a good first quarter in 2010 would help the company turn its results around after the financial crisis of 2009. However, flooding in the tannery at the end of the winter had caused further operational problems, he said.
Mr Borge tried to secure new investment in the business from exising shareholders, but told local media on May 25 that no new funding was available and that all hope of saving the tannery had gone.
Around 70 jobs will be lost.
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