Landa Digital Printing files for bankruptcy

According to Israeli media, nanographic digital press manufacturer Landa Digital Printing has filed for court protection following financial difficulties. Ctech reports that Landa is in debt of approximately 516 million USD.

Ctech, the English-language tech news division of Calcalist, Israel’s daily financial newspaper, reports that Landa owes about 516 million USD. The development comes just weeks after local media reported that the company was also planning to lay off more than 100 employees, more than 20 percent of its workforce.

According to Calcalist, Landa Digital Printing lost 312 million USD across 2022 and 2023. In 2022, it posted revenue of 35 million USD alongside a loss of 148 million USD; in 2023, revenue rose to 47 million USD, but the loss deepened to 164 million USD. Ctech explained that the increased loss was primarily due to interest payments on loans from some shareholders, which were subsequently converted into equity. The company does not yet have audited financial statements for 2024.

Benny Landa, director of Landa Digital Printing, is a former Indigo business owner, which HP acquired for 850 million USD in 2002 to create the successful HP Indigo business. He launched Landa Digital Printing in 2011. In 2017, the company began selling alpha and beta models of its machines, but real sales only started in 2022. According to Ctech, the company has sold just over 50 machines so far.

In a statement issued to the media, Landa Digital Printing, said: ‘Despite the company’s significant achievements, the time it has taken to reach the full realisation of its business potential is longer than expected.

‘The geopolitical situation, as a result of the long war in Israel and regional instability, as well as commercial reasons, have made it difficult for the company, and the shareholders who have financed the company throughout its years and they recently informed the company’s management that they intend to stop financing the company immediately.

‘As a result, the company has found itself in a cash flow crisis. In response, the company has carried out a reorganisation process in recent weeks, as part of which significant cuts were also made to deal with the situation and enable the continued realisation of its potential.

‘The company’s employees and customers have been updated on the situation and will continue to be updated as relevant developments occur, out of understanding the complex situation in which they find themselves and out of deep appreciation for their work and their full commitment to the company.’

Landa confirmed that shareholders who have supported the company over the years must stop funding immediately. Consequently, the company is now facing a cash flow crisis. In response, Landa has recently begun a reorganization, including major cuts to manage the situation.

The court granted the company 14 days of protection to freeze proceedings.