Grow or die.
That's a popular concept in business that basically suggests that companies that try to maintain the status quo ultimately wither and die.
There's some truth to that idea but a growth at-all-cost model only works during periods where cash is cheap and easy to come by. That's not the case right now and a number of once high-flying brands have struggled.
Related: Iconic retail brand has a new life after bankruptcy shutdown
Some of them are companies you know. Brands like Peloton and Wayfair did really well during the covid pandemic and both are now fighting for survival due to falling demand, and a challenging fundraising environment.
Now, how a company grows matters, and making the wrong partnership or deal could lead to the end of a company. That's what happened to a once-growing Spokane, Washington-area manufacturing company.
The technology leader had a very promising future and appeared on track to be profitable by the end of 2024. That got derailed when demand in its chief market plummeted.
Image source: TheStreet
Leading LED light company filed Chapter 7 bankruptcy
The manufacturer, which opened in 2013, has been a pioneer in the LED lighting space. And, while Rohinni may not be a household name, it has been a leader in its space.
The company described its operations on its website:
"Rohinni LLC makes beautiful light available anywhere. The company's innovative, proprietary robotic process supersedes complex LED manufacture by placing mini and micro LEDs directly on virtually any substrate at unprecedented speeds, in high volumes, and at greatly reduced cost."
That's a mission that led to a 2019 partnership with BOE, a Chinese company that called itself "a global leader in semiconductor display industry as well as an IoT company providing intelligent interface products and professional services for information interaction and human health," according to its website.
It was a deal that was supposed to help Rohinni grow, which may have led to its downfall.
"This joint venture will bring Rohinni's market-ready technology which is three to five times quicker than traditional pick-and-place processes, capable of placing 50 die-per-second (dps) with 10 micron accuracy at 99.999% die yields to consumer products," the companies shared in a press release.
That proved to be the wrong bet for Rohinni as demand tailed off quickly in China, where the company was required by the terms of the deal, to do most of its business.
The company filed for Chapter 7 liquidation with the Eastern District Court of Washington. The company reported a 96% drop in revenue in 2023, according to the court filings.
Manufacturing company leaves a complicated mess
After its abrupt closure, Rohinni has left a complicated picture. It reported $5 million in liabilities and $40.4 million in assets, which sounds like a company that should still be solvent.
That's not a full picture of the company's financial position.
"A Jan. 17 court filing shows Rohinni had over $5 million in liabilities and assets worth $40.4 million, including $128,000 held in bank accounts at Wells Fargo. Many of those assets, however, are intellectual property rights that are tied up in exclusive-use agreements with a Chinese joint venture company," The Spokane Journal reported.
The bankruptcy court will have to decide what happens to the over 100 patents the company holds, many of them jointly with BOE. Rohinni's deal with its Chinese partner limited its ability to sell off some of its assets to raise cash.
"Specifically, contractual exclusivity agreements limited Rohinni's ability to sell its intellectual property assets to other parties, plus there was a significant decline in the demand for displays in China, where the company had focused on new business partnerships and activity," the website reported.
Emails to the company are met with an automated response.
"Unfortunately, Rohinni has ceased operations and filed for Chapter 7 bankruptcy as of end of day 16 January 2024."
The company's website has not been taken down and it shows that Ryan Cameron served as its CEO at the time of the abrupt shutdown and Chapter 7 bankruptcy filing.
