F2 International, the Austrian windsurfing and snowboarding brand, has filed for bankruptcy proceedings at a court in Salzburg just one year after it was acquired by Gerald Pascher. The insolvency documents indicate that F2 has accumulated debts of about €5.8 million, while its assets are worth just €791,000.
The company wants to reach a settlement with its 125 creditors and obtain fresh capital to start up a downsized version of F2, with sharply reduced marketing and development costs.
In a short statement, Pascher declared that substantial investments had been made to reposition the brand, to seal new partnerships and to develop new products, but that this had not yielded the expected returns. According to an association of creditors that presumably had access to the insolvency documents, a sum of €1.92 million was injected into the company after it was taken over in March 2007 from Boards & More, the boardsports business owned by Airesis. However, the money only lasted for about nine months, and by the end of the financial year, in February, F2 had accumulated a loss of €2.2 million on sales of €5.2 million. The company stood to lose at least another million euros for the current year.
Reinhard Hofbauer, managing director of F2, has resigned as part of the proceedings. Robert Bukovc was appointed as trustee in insolvency, running the company with Pascher, who has been formally appointed as the new managing director.