Engine, Subscription | Flex is bankruptcy

Engine, Subscription | Flex is bankruptcy
Engine, Subscription | Flex is bankruptcy
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– Fleks AS will announce a tender on Monday as a result of the company not being successful after a longer restructuring phase with its creditors, the company reports in a press release.

A controlled liquidation of the company will now be carried out.

Fleks has offered long-term rental of cars for 1–12 months, as an alternative to leasing.

The company has been a collaborative project between Sparebank 1 and the large car importer Bertel O. Steen, who has the agency for Mercedes, Kia and all .

Read also: What is cheapest – buy, lease or subscribe to a car?

What happens to the cars that have now been leased is not yet clear. The company states that they have sent out e-mails to their customers with information about the way forward. Nettavisen has not been able to get in touch with the company.

Increased interest rates and rapid depreciation

The company explains the background with the drop in used car prices, increased interest costs and that weakened purchasing power has resulted in a very demanding year and a half.

The last public financial year is 2022, when the company had roughly the same deficit as income.

The company has been working for the past six months to put in place a restructuring of the debt together with creditors and owners. The board concluded on Sunday evening that they have not arrived at a solution that provides sufficient predictability going forward and will request a tender on Monday morning.

– The external factors that have affected Norwegian business and, to a large extent, the Norwegian car industry, have weakened the opportunities for success in an industry where Fleks, as the spearhead, must largely bear the costs of maturation and knowledge building. Having said that, especially in the last six months, we have experienced an increasing knowledge and maturity around car subscriptions, and that the underlying operations in the company have improved significantly. Unfortunately, this was not enough and the time we had at our disposal was not long enough, says Sverre R. Kjær, who joined Fleks AS as chairman of the board during the restructuring period.

– The adventure is over

– It is very sad to acknowledge that this adventure is now over, when at the same time we have become more confident that the business model will succeed in the end and we are more confident that car subscriptions will become one of the most important forms of ownership in the years to come. Timing is an important element in innovation and we were perhaps too early. Now it’s about taking care of the wonderful people who work at Fleks together with our owners and ensuring that they get as soft a landing as possible. They represent a competence and willingness to innovate that you will be looking for for a long time and I am sure that they will all create big changes in the future on their respective sides. I would like to finish by thanking everyone who has cheered us on these years, and who has embraced our vision of never owning a car again, says Petter Utengen, CEO of Fleks.

The article is in Norwegian

Norway

Tags: Engine Subscription Flex bankruptcy

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