Has the Tariff War Brought Highcon to Bankruptcy?

By Linda Casey

Hours after the Israeli news site Globes reported that Highcon Systems is winding down its businesses, reports are coming in that Highcon has filed for bankruptcy protection and has cited concerns over the tariff war and the global economic slowdown as factors in the decision to file for bankruptcy protection under Chapter 10 Insolvency and economic Rehabilitation Law.

According to Shiri Habib-Valdhorn's article “Packaging Tech Co. Highcon Winding Down” on Globes, the English version of the Israeli business-focused daily, “Highcon has wiped off 99.9% of its value for investors.”

The Israeli newspaper correspondent notes Highcon’s Chairperson Shlomo Nimrodi had previously expressed confidence in the company’s disruptive technology. However, a combination of external and business factors, including a global economic slowdown, “‘the effects of the tariff war initiated by the U.S.,’” significant cash flow difficulties, and postponed orders amounting to $10 million, has led to Highcon’s current predicament.

Extensive layoffs have already happened, Habib-Valdhorn reports, with the company retaining only 20 employees and consultants to maintain minimal operations.

Habib-Valdhorn reports one bright spot for the company — noting that Highcon’s share price shot up by more than 60% after the company reported its plans to the stock exchange last week. Since the initial uptick and at the time of publication of the Globes’ article today, Highcon share price has dropped approximately 20%.

The full article by Shiri Habib-Valdhorn can be found on the Israeli site Globes at https://en.globes.co.il/en/article-packaging-tech-co-highcon-winding-down-1001506469

0 Comments

View Comments

Linda Casey Author's page

As editor-in-chief of Packaging Impressions — the leading publication and online content provider for the printed packaging markets — Linda Casey leverages her experience in the packaging, branding, marketing, and printing industries to deliver content that label and package printers can use to improve their businesses and operations.

Prior to her role at Packaging Impressions, Casey was editor-in-chief of BXP: Brand Experience magazine, which celebrated brand design as a strategic business competence. Her body of work includes deep explorations into a range of branding, business, packaging, and printing topics.

Casey’s other passion, communications, has landed her on the staffs of a multitude of print publications, including Package Design, Converting, Packaging Digest, Instant & Small Commercial Printer, High Volume Printing, BXP: Brand Experience magazine, and more. Casey started her career more than three decades ago as news director for WJAM, a youth-oriented music-and-news counterpart to WGCI and part of the Chicago-based station’s AM band presence.