On 12 March 2025 Northvolt released the news that, having exhausted all efforts to save the future of the company, Northvolt AB has filed for bankruptcy in Sweden after facing severe financial challenges. The EV battery manufacturer has struggled with rising costs, supply chain disruptions, and fluctuating market demands. Internal production ramp-up issues further increased the financial strain.

The bankruptcy process will be overseen by a Swedish court-appointed trustee, Mikael Kubu. The trustee will manage the sale of assets and settle obligations, ensuring a smooth transition for employees and creditors. Notably, Northvolt's German and North American subsidiaries are not included in the Swedish filing. The company's leadership expressed hope that the groundwork laid, including technological advancements and production improvements, would attract new investment during the bankruptcy proceedings.  

Northvolt acknowledged the impact on its stakeholders, emphasising its commitment to supporting employees during this transition. The company highlighted its achievements, including producing one million sustainable battery cells and improving production efficiency. Despite these successes, the financial pressures proved insurmountable.

More details here. 

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UK fashion store Quiz Clothing has fallen into administration this year, with professionals from Teneo handling the process. The news comes weeks after consultants from Interpath were tasked with advising the group’s leading lenders on its mounting crisis.This follows a period of financial instability and recent delisting from the London Stock Exchange. Chaired by Peter Cowgill, former JD Sports Fashion boss, Quiz Clothing operates roughly 60 standalone stores and dozens more concessions, with around 1,500 employees.The business had previously flagged concerns about its ability to continue as a going concern, prompting its principal lender, HSBC, to seek advisory support from Interpath.

The administration has resulted in the closure of 23 of Quiz's 60 standalone stores, leading to approximately 200 redundancies. The remaining assets of Zandra Retail, which operates Quiz's UK and Irish stores, will be acquired by Orion Retail, a subsidiary controlled by the Ramzan family, in a pre-pack administration. Quiz's online business, international operations, and concessions remain unaffected. 

CEO Sheraz Ramzan attributed the decision to "continuing challenging trading conditions," emphasizing the need for a more sustainable footing. Teneo's joint administrator, Gavin Maher, acknowledged the difficult time for employees and stakeholders, while highlighting the job preservation achieved through the sale. The company had reported a pre-tax loss of £4.7m and a revenue decline in its most recent financial results.

Full article here

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In 2024, Europe experienced a significant restructuring landscape, though not the wave of insolvencies some had predicted. Analysts foresee a prolonged down-cycle without extreme fluctuations, partly due to covenant-lite structures and available investment funds. Covenant-lite terms and debtor-friendly insolvency laws have enabled companies like Altice and Ardagh to pursue aggressive liability management transactions, a trend that may grow in 2025. However, uncertainty remains over the viability of these transactions following the Serta ruling in the US.

The UK’s Part 26A restructuring plan (RP) remained the preferred restructuring tool, with key cases such as Adler and Thames Water shaping legal precedent. RPs continued to be used to cram down creditors, including landlords, in cases like Cineworld and Virgin Active. As RPs become more common, courts have reinforced the importance of proper litigation strategies when challenging them, with cases like Chaptre Finance highlighting the need for expert evidence and procedural compliance.

Beyond restructuring plans, liability management transactions became more prominent in Europe, with creditors using cooperation agreements to counteract aggressive debt moves. Additionally, financial distress in key sectors, such as the UK’s privatised water industry and higher education, could lead to further restructuring activity in 2025. Thames Water’s RP and the financial struggles of universities, exacerbated by rising costs and reduced student enrollment, are expected to be major focal points in the coming year.

Read the full article at Cadwalader which includes examples and full references

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The insolvency of Ÿnsect, a French insect protein start-up, represents a major failure for both private investors and France's Deep Tech ambitions. Despite being hailed as a model for public-private partnerships, the company's inability to scale its industrial production plant, Ÿnfarm, led to a critical "cash flow deadlock." This collapse undermines the government's strategy to foster science-based start-ups for economic re-industrialization.

Bpifrance, the French public investment bank, is among the hardest hit, having invested over $30 million directly in Ÿnsect since 2016, alongside indirect contributions through various financial mechanisms. This substantial public investment makes Ÿnsect's failure a significant blow to the government's innovation strategy. Private investors, including Astanor Ventures, Upfront, and Eurazeo, also face substantial losses, with Astanor alone investing around $32 million.

Furthermore, Ÿnsect's $126 million debt from private banks, including state-linked institutions, adds to the financial fallout. With minimal repayments, creditors are likely to incur significant losses, highlighting the broad financial repercussions of the company's collapse and the risks associated with investing in ambitious, large-scale Deep Tech ventures.

Read the full story at Sifted.eu

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Xerotech, an electric vehicle battery firm, has entered liquidation just months after planning to raise up to €30 million. The Irish company, founded by Barry Flannery, had already secured €44 million in investment and employed over 130 people. Xerotech produced batteries for industrial vehicles and served around 40 clients.

The liquidation follows a devastating fire at Xerotech’s manufacturing facility in Claregalway, Galway, which took three days to control. This was the second fire at the facility since 2022, further damaging the company’s ability to attract investors. A recent statement attributed the fire to significantly impacting its capital-raising efforts. As a result, employees, creditors, and shareholders were formally notified about the company's winding-up process, which includes seeking potential buyers for its assets.

EY-Parthenon’s Luke Charleton and Alan Large have been appointed as joint liquidators, and have emphasised their commitment to ensuring site safety and facilitating a structured transition for employees and stakeholders.

Full story in The Irish Times

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