Label Printing Giant MPS Netherlands Entity Declares Bankruptcy, Several Buyers Interested in Acquisition

The Dutch entity of MPS Group, a manufacturer of label printing machines, has been formally declared bankrupt through the Dutch court system. Four companies affected by the bankruptcy include: MPS Holding Company, MPS Systems Company, MPS Service and Commissioning Company, and MPS Supply Chain Company, all of which were declared bankrupt in the Netherlands on October 28.

This news is undoubtedly a huge blow to the entire printing industry. MPS has a long history in this field and had the potential to continue operations for many years if a suitable investor had been found.

Causes and Impacts of Bankruptcy: Investor Withdrawal and the Russia-Ukraine War Are the Main FactorsMPS revealed that the key factor that ultimately left it with no choice but to declare bankruptcy was an investor withdrawing funds at the last moment. Although the company's turnover exceeded 30 million euros in the 2024-2025 fiscal year, it was still unable to avoid bankruptcy.MPS pointed out that the Russia-Ukraine war was the main reason for the severe disruption of its business. Following Russia's invasion of Ukraine, energy costs surged, and losses caused by the war accounted for about 20% of its turnover. In addition, the company claimed that trade rate fluctuations between the EU and the US, following the tariff policies implemented by US President Donald Trump, were also among the reasons leading to its bankruptcy.As a result, up to 100 employees at the Arnhem-based factory face the risk of unemployment. It is worth noting that MPS Systems has several overseas branches, such as MPS Systems (UK) in Wigan, UK, which are not affected by the Dutch bankruptcy proceedings.Comprehensive Suspension of Operations: Orders, Deliveries, Services, and Warranties AffectedFollowing the bankruptcy announcement, MPS has declared that all operational activities-including production, deliveries, and services-have been temporarily suspended.Suspension of Orders and Deliveries: All orders and deliveries placed before the bankruptcy notice, including the shipment of new equipment, will be put on hold.Spare Parts and Consumables: Existing customers can still order spare parts, tools, and consumables during this period.Services and Technical Support: MPS's remote technical support team remains operational, and on-site service engineers can provide services with the trustee's approval. The service department will verify with the trustee whether orders can be confirmed, and the results will be communicated separately.Warranty Void: Due to the bankruptcy, MPS's warranty obligations are immediately void, and machines still under warranty will no longer be covered by warranty services.Handling of Creditors and Customer Rights: Cooling-Off Period and Fund RecoveryThe Dutch Central Bankruptcy Register can provide the latest information to affected parties. The Gelderland District Court has appointed attorney Eric Looijen of Stellicher Advocaten law firm as the bankruptcy trustee for the above companies, who is currently managing the companies' affairs and overseeing subsequent steps.

All matters related to claims, outstanding invoices, and warranties must be handled by customers and creditors through the trustee and the trustee's law firm."Cooling-Off Period": The Dutch court will establish a two-month "cooling-off period" (as is customary in the Netherlands), during which creditors may not file claims or attempt to obtain any goods from the bankrupt group companies. The trustee will use this period to assess the company's debt burden and accumulated asset value and determine whether the company can continue operations through restructuring.Outstanding Customer Payments: MPS requests that customers who have not yet paid continue to settle their invoices, but outstanding bills must be paid into a separate bank account controlled by the trustee.Deposit and Outstanding Invoice Claims: Even if all orders are suspended, deposits for incomplete orders are non-refundable. Payments for outstanding company invoices are not guaranteed, and creditors must file claims with the bankruptcy court. Ultimately, the ability to recover funds depends on the remaining assets after liquidation.Compensation and Warranty Claims: The company is not responsible for any compensation obligations. If customers believe they are entitled to compensation or warranty claims, they must submit claims to the trustee after the two-month cooling-off period ends.Management Team: For technical issues, the trustee will contact the MPS management team, but the final decision is subject to the trustee's confirmation.Asset Sale and Future Prospects: Buyers compete, the business may continue.Currently, the trustee is exploring the possibility of selling assets as a going concern to preserve the brand, technology, and the supply of spare parts to existing customers. MPS has indicated that several buyers have shown interest in acquiring the company, and the trustee is negotiating with these interested parties.Sale of Going Concern Assets: The trustee anticipates carrying out a "sale of going concern assets." This means that if a buyer is found, they must continue operations in the same manner as the seller, and all contracts must be honored by the new owner.Customer Cooperation: MPS stated that whether the company will continue cooperating with existing customers "will be decided by the new owner."Information Updates: Customers can expect to receive updates "when significant progress occurs," which may take up to a month.MPS has posted a Frequently Asked Questions page on its website to address customer inquiries. Although the bankruptcy affects business relationships and reputation, the trustee has stated that matters concerning reputation and communication with customers are not within their responsibilities and advises customers to inform their partners that the bankruptcy concerns MPS, not their own operations.