File pic Photo: Nanolayr
An Auckland-based nanofibre textile company with backing from well-known venture capital firms, has been placed into voluntary administration.
Nanolayr, which was founded in 2009, appointed Stephen Keen and Russell Moore of Grant Thornton as administrators on Thursday.
Grant Thornton NZ said voluntary administration was due to a number of factors, including New Zealand being too far from key markets, and as Nanolayr could not get enough investment to reach "commercial revenue scale needed to become profitable".
Nanolayr had well-known backers, including Movac Fund, Icehouse Ventures, Sir Stephen Tindall's K1W1, and Ngāi Tahu.
The administrators were seeking expressions of interest from potential local and international buyers.
They said Nanolayr owned "world-leading technology and assets", and the administrators expected strong interest from companies.
Nanolayr's flagship 5500 square metre manufacturing plant at Māngere Bridge produced nanofibre textiles at scale.
"Nanolayr's investors have been very supportive of the company's potential as they have sought commercial scale," a statement from Nanolayr and Grant Thornton said.
"As such they are endeavouring to support all staff impacted by this decision."
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