HAUSEN, Germany (BRAIN) — YT Industries is restructuring in Germany, the company announced Wednesday in a YouTube video posted by the brand's founder, Markus Flossman.
In the video (below), Flossman said the consumer-direct brand became victim to the post-COVID "whiplash" that challenged many brands across the industry.
Flossman stepped down as CEO five years ago and YT hired a new CEO, Sam Nicols. Soon after, a private equity group, Ardian Expansion invested in the company.
"We were ready to take the next big step. I thought, what could possibly go wrong?" Flossman said in the video.
He said following the whiplash, he returned as CEO and YT worked through most of its inventory as it prepared new products.
"We were on the right path until earlier this year. A key supplier failed us with quality issues and delivery delays right when we needed the most. At the same time, the US market became widely unstable. Everything from natural disasters to chaotic trade policies hit consumer demand hard.
"Still, we kept fighting. We invested again multiple times to cover past losses and make it through. While we are grateful for the support we've received from our financial partners, additional funding could not be secured under the current structure. We've reached a point I simply can't get through on my own. And now, just as the market is starting to recover and with some of our most exciting products just around the corner, we are running out of options," he said.
Flossman said the company opted to enter a restructuring process as it seeks new investors.
"Doing so allows us to restructure our finances, attract new investors, and ultimately set up the brand for long-term success. Of course, this is a difficult chapter in YT's story, but it's not the end. I still believe in YT.
For me, this is just a reset, the beginning of a new chapter, a chance to take a breath in getting things in the right order. We are already in talks with new partners, and I'm confident this process will make us stronger, smarter, and hungrier."
Flossman said YT generates nearly half of its revenue in North America, where is has U.S. headquarters in San Clemente, California, and a company store/demo center in Bentonville, Arkansas.
