The unfortunate saga of Overum, the Swedish plough manufacturer, has taken a new twist with it being declared bankrupt by its latest owners, FairCap, the German investment company based in Munich.

Faircap purchased the company from New Holland in April of last year, as the tractor manufacturer appeared to back away from its ambition of going full line and filling its dealers yards with blue implements as well as tractors.

The latest development centres around the sudden closure of the factory by trade unions after the company management resigned en bloc at the beginning of September.

This left the company rudderless and the factory unmanaged, and so the local trade union felt it necessary to step in and close the factory itself, declaring that to keep it open without proper supervision would be unsafe.

According to reports in the Swedish press, Overum had been experiencing financial difficulties for some time with losses in the years 2020 to 2023.

While these losses had been decreasing, it was still not a healthy situation and, according to media reports, Faircap has not been forthcoming on the investment it had pledged when it took over the company.

The legally required financial report for 2024 remains unfiled, although it was due last summer, and the company no longer has a board of directors - all of whom, it appears, have disappeared and can no longer be contacted.

Despite this lack of direction, the company has managed to issue a statement on the situation, claiming that it was making steady progress towards becoming a fully independent company again that enjoyed good relations with its dealers, and orders were increasing.

Yet it also noted that trading conditions remained difficult and that unspecified 'financial challenges that could not be resolved' had forced the company to file for bankruptcy to preserve the factory operations and jobs.

Without a board of directors to take such action, it must be assumed that Faircap stepped in and took the necessary steps, although the parent company appears not to have made any public comment upon the situation.

Presently, the situation would appear to be that the factory has ceased production while the difficulties are resolved, hopefully with the preservation of the approximately 65 jobs that are affected.

Faircap has not - as far as is known - made any attempt to rescue its subsidiary or reappoint a board of directors.

Overum had been due to appear at Agritechnica next month.