Nexa3D has disputed claims it has filed – or intends to file – for chapter 11 bankruptcy.
The company was due to exhibit at this year’s Formnext trade fair in Frankfurt until a late withdrawal.
Its absence generated much discussion, with rumours and reports suggesting the company is facing bankruptcy. There were also suggestions that founder Avi Reichental had left his position as CEO and that a wave of redundancies had left the company with only 20 staff. Nexa3D has refuted all of the above, with one caveat.
While the company insists a bankruptcy isn’t imminent and that Reichental remains in post as CEO, it did confirm a reduction in workforce has taken place. The company made those redundancies to ‘rightsize’ Nexa3D while it navigates the ‘tough economic conditions that additive industry is currently experiencing’ but has told TCT there are 'certainly more than 20' staff working for the company.
Prior to the rumour mill going into overdrive, Nexa3D published a blog post which explained the company would not be exhibiting at Formnext 2024 and was instead spending the week moving into a brand-new facility that ‘marks its commitment to scalability and growth.’ The post noted how a ‘strategic decision to focus inward’ had been made, with Nexa3D channelling its resources into the transition from one facility to another.
In response to TCT’s enquiries, Nexa3D also provided the following statement from CEO Reichental: “Nexa3D was unable to attend Formnext 2024 as we instead focused on our corporate consolidation into one facility. Like many other 3D printing companies, we did implement a reduction in our workforce earlier this year. With that in consideration, we could not split resources between the move and Formnext. We always want to execute well, and with a split focus, we knew that would not be possible. Instead, we decided to focus on the business needs in front of us.”
