Enersol, the residential unit of German battery manufacturer Sonnen, says it will cease operations at the end of October due to unprofitability, despite strong growth over the last three years.
Article indeed lacks details, but my guess would be that they bought the company in 2019 and loaded it with the bank debt from that purchase expecting that in a growing market and low interest rates the company would be able to pay back their own purchase.
But now a few years later, with more competition diminishing profits and higher than before interest rates on the loans, and suddenly it looks much less possible. Obviously Sonne will not admit to this, but such shady practises are sadly very common for company takeovers.
Article indeed lacks details, but my guess would be that they bought the company in 2019 and loaded it with the bank debt from that purchase expecting that in a growing market and low interest rates the company would be able to pay back their own purchase.
But now a few years later, with more competition diminishing profits and higher than before interest rates on the loans, and suddenly it looks much less possible. Obviously Sonne will not admit to this, but such shady practises are sadly very common for company takeovers.