Grow or die.
This is a popular concept in business that basically suggests that companies that try to maintain the status quo eventually wither and die.
There is some truth to that idea, but a growth-at-all-costs model only works during periods when cash is cheap and easy to obtain. That's not the case right now and several once-high-flying brands have struggled.
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Some of them are companies you know. Brands like Peloton and Wayfair did very well during the Covid pandemic and are now both struggling to survive due to falling demand and a challenging fundraising environment.
Now, how a business grows is important, and making the wrong partnership or deal could lead to the end of a business. That's what happened to a once-growing Spokane, Washington-area manufacturing company.
The technology leader had a very promising future and seemed on track to be profitable by the end of 2024. That was derailed when demand in its main market plummeted.
Image source: The street
Leading LED Lighting Company Filed for Chapter 7 Bankruptcy
The manufacturer, opened in 2013, has been a pioneer in the LED lighting space. And while Rohinni may not be a household name, he has been a leader in his field.
The company described its operations on its website:
“Rohinni LLC makes beautiful light available anywhere. The company's innovative patented robotic process replaces complex LED manufacturing by placing mini and micro LEDs directly onto virtually any substrate at unprecedented speeds, in high volumes and at a cost very small.”
That's a mission that led to a 2019 partnership with BOE, a Chinese company that called itself “a global leader in the semiconductor display industry, as well as an IoT company that offers smart interface products and professional services for the interaction of information and human health,” according to its website.
It was a deal that was supposed to help Rohinni grow, which may have led to his downfall.
“This joint venture will bring to the consumer Rohinni's market-ready technology, which is three to five times faster than traditional pick-and-place processes, capable of placing 50 dies per second (dps) with an accuracy of 10 microns.” with a die yield of 99.999%. products,” the companies shared in a press release.
That turned out to be a wrong bet for Rohinni, as demand declined rapidly in China, where the terms of the deal required the company to do most of its business.
The company filed for Chapter 7 liquidation before the Eastern District Court of Washington. The company reported a 96% drop in revenue in 2023, according to court documents.
Manufacturing company leaves a complicated mess
After its abrupt closure, Rohinni has left a complicated outlook. He reported $5 million in liabilities and $40.4 million in assets, which seems like a company that should still be solvent.
That's not a complete picture of the company's financial situation.
“A court document from Jan. 17 shows that Rohinni had more than $5 million in liabilities and assets worth $40.4 million, including $128,000 in bank accounts at Wells Fargo. However, many of those assets “are intellectual property rights that are tied to exclusive use rights. agreements with a Chinese joint venture,” The Spokane Journal reported.
The bankruptcy court will have to decide what happens to the more than 100 patents the company owns, many of them jointly with BOE. Rohinni's deal with its Chinese partner limited its ability to sell some of its assets to raise cash.
“Specifically, contractual exclusivity agreements limited Rohinni's ability to sell its intellectual property assets to other parties, and there was a significant decline in demand for displays in China, where the company had focused on new partnerships and commercial activities.” , the website reported.
Emails sent to the company receive an automatic response.
“Unfortunately, Rohinni has ceased operations and filed for Chapter 7 bankruptcy effective January 16, 2024.”
The company's website has not been removed and shows that Ryan Cameron was serving as its CEO at the time of the abrupt closure and Chapter 7 bankruptcy filing.
