The Israel-headquartered manufacturer of digital cutting and creasing systems had previously restructured in 2023, and came out of last year’s Drupa on a high with a strong order pipeline.
However in a filing on the Tel Aviv Stock Exchange today (27 March), its board of directors said the business had encountered “significant cash flow difficulties due to a combination of external and economic factors”, and was preparing to submit proceedings under Chapter 10 Insolvency and Economic Rehabilitation Law.
Most of Highcon’s employees and consultants have been laid off, with 20 remaining to continue its operations and customer support, and to maintain Highcon as a “going concern”.
Printweek understands 50 people have gone.
Highcon said that orders totalling approximately $10m (£7.72m) and in the final stages of approval, “were postponed until later in the year for reasons beyond the company's control, which prevented it from securing the necessary financing and meeting its financial obligations”.
In addition, the Israel-Hamas war in the region created significant uncertainty, which led to the postponement of commitments from existing and potential customers.
The effects of the “tariff war initiated by the US, has caused growing concern about large investments, among other things” from the company's customers and potential customers.
Highcon is traded on the Tel Aviv Stock Exchange and its biggest investors are Benny Landa’s Landa Ventures, HND Investments, and Nusha Holdings.
Highcon’s key products are the Euclid for short-run production in folding cartons and corrugated, and the Beam 2 and Beam 2C for medium and longer runs. It announced new products for packaging and corrugated last year.
UK customers include Linney and Durham Box.
Highcon’s share price crashed by nearly 78% on the news to NIS5.5, giving it a market capitalisation of just NIS2,423,000 (£508,944).
