Resolve, the UK business investment and advisory practice, has announced it has been appointed as administrators to Lignia Wood Company , a producer of sustainable FSC-certified modified timber for the construction and marine industry globally.
Lignia has a proprietary and patented process that modifies wood to improve its appearance and properties, thereby giving wood products a longer life.
Lignia began commercial production and sales in the summer of 2019. It built momentum from the onset, however due to the global Covid-19 pandemic, sales were impacted.
Resolve said that during Covid-19, the company achieved strong operational and R&D progress however it did not secure the “necessary funds” to continue to develop and grow its product offering to “take advantage” of the global modified wood market.
Resolve said it is “pleased to offer” an opportunity for introduction of rescue capital or sale of Lignia’s business and assets.
ReSolve partner, Chris Farrington, said: “Early stage businesses that under normal circumstances would have been healthy and on a clear path to profitability have found their balance sheets squeezed by COVID-19 and unable to secure the necessary capital for next-stage growth and development.
“Companies like Lignia, which has sound fundamentals and growth prospects, is one of them. We are confident that we will find a new owner that seeks to capitalise on the sustainable wood trend.”