DanTruck A/S has filed a petition in bankruptcy after multiple attempts to save the 50-year-old forklift manufacturer ended in failure.

"Since the financial crisis hit in autumn 2008, the European market for forklifts has plummeted by around 80%. At the same time, costs have skyrocketed on account of increasing prices for raw materials," managing director Michael Gotfredsen says.

He says faced with difficult market conditions, numerous measures have been implemented to pilot the company through the crisis. "We have rationalised and boosted efficiency, and our owners injected new capital into the business a year ago. We make good products that enjoy a very positive reputation but, as the market continued to decline, our unit sales fell below the level necessary to maintain profitable production."

DanTruck is looking to selling its production activities, to "wipe the slate clean", as Gotfredsen puts it, so the business can start afresh.

A new company has been established under the same name, with the same management team and most of the existing workforce. It will continue the viable parts of the DanTruck business, including agency sales of other forklift brands, sale of used forklifts, service operations and spare parts sales.

Gotfredsen says he "deeply regrets" that the move will inevitably result in suppliers and DanTruck's financial provider incurring appreciable losses.

"Our previous owners have been joined by new investors from what I would term the 'heavyweight' class. In addition, I and other members of the management team have injected capital into the business as an expression of our confidence and commitment to re-establishing DanTruck's position in the market.

"Of course, it is always sad when the only way to carry on is to file for bankruptcy. That is why I am upset by the current situation, but optimistic at the same time because it has proved possible to retain a large proportion of jobs and continue parts of the business," Gotfredsen says.