Next generation robotics and AI provider Franka Emika continues discussions with investor during preliminary insolvency phase
Published by
Özlem Odeh
on
▪ Franka Emika GmbH files for insolvency due to irreconcilable shareholder differences
▪ Restructuring expert Dr. Matthias Hofmann assigned as preliminary insolvency administrator
▪ Operations continue on strong order book basis
▪ Further discussions with investors already in planning for coming days.
Munich, 31 August 2023 – The Munich-based development pioneer Franka Emika has filed for insolvency against the background of irreconcilable differences at the shareholder level. At the request of Franka Emika’s management, the Munich Local Court ordered preliminary insolvency administration on 25 August 2023 and appointed restructuring expert Dr. Matthias Hofmann from the law firm POHLMANN HOFMANN as the preliminary insolvency administrator. In recent months, talks with several potential investors could not be concluded recently due to differences among the shareholders of Franka Emika GmbH. The preliminary insolvency administrator Matthias Hofmann will take charge of on these ongoing talks with investors and will additionally open discussions with new investors.
Since its founding in 2016, Franka Emika has made a name for itself in the field of next generation robotics. The company delivers accessibly priced, easy to use robotic arms and services that provide the ability to mimic a human sense of touch and can self-optimize their tasks through AI and Machine Learning for greater productivity. These unique factors allow the automation of industrial tasks and activities that were previously not automatable. Its two main products, the Franka Production 3 (FP3) and Franka Research 3 (FR3), aimed at two different growth segments, have experienced high market acceptance in recent years. With the industry certification, the category leadership in the research & innovation area found strong complementary acceptance in the manufacturing and industry area, ensuring a strong order books basis.
The provisional insolvency administrator Dr. Matthias Hofmann and his team are currently taking an in-depth look at the company. Franka Emika management and the preliminary insolvency administrator have already informed the more than 100 employees of Franka Emika about the situation. Customers, partners and other stakeholders are also in the process of being informed. The search for investors is being expanded and Matthias Hofmann is confident concluding the investor discussion, saying, “Franka Emika has developed a great technology in the past years and brought it to the market quite successfully. Especially in view of the shortage of skilled workers, the areas of application for Franka Emika’s lightweight robots are diverse and numerous. Considering this, it is clear the company has significant potential, which makes it very attractive for investors.”
Franka Emika Managing Director Dr. Patrick Pfaff adds, “Our order books are full, and we are pleased to be able to serve our customers well again with the support of our supplier and Dr. Hofmann. In the meantime, more than half of our orders now come from industry - including industrial players, as well as innovators like Deepmind and a recently won OEM in the US covering a completely newly market segment, major research institutions and numerous medium-sized enterprises, addressing labor shortage and securing their local competitiveness with our solution. With a new investor at our side and with the support of our business partners, we can double our previous year's turnover in the short term and achieve a positive cash flow.“
The preliminary insolvency administrator and his team are currently preparing the pre-financing of insolvency benefits for the more than 100 employees. “The wages of the employees are secured up to and including October 2023 through state-sponsored insolvency benefits. Until then, we will work together to find a solution for the future of the company. I am very confident that we will succeed in leading Franka Emika into a good future together,” says Hofmann.
About Franka Emika
Franka Emika is a Munich-based robotics platform company and is a pioneer in robotics technology with a human sense of touch. The company produces its robots in Germany and offers accessible robotics solutions for industrial automation (Franka Production 3) and AI and robotics research (Franka Research 3). All robotic products have unique intelligent software that is easy to use thanks to its intuitive robot app framework and safety certified hardware. The Franka World online platform connects customers, partners, developers and robots. It provides centralized management and remote control of Franka Emika robots, as well as access to a growing ecosystem of accredited software and hardware.
About Pohlmann Hofmann
Pohlmann Hofmann is one of the leading law firms for insolvency administration and self-administration in Germany with more than 60 employees, of which around 20 are professionals, and several offices in Southern Germany. The firm focuses on restructuring and reorganization measures in insolvency proceedings, the supervision of self-administration and protective shield proceedings, the handling of criminal insolvencies and the handling and supervision of insolvency proceedings with complex legal problems.