Vertigo Group hoping for 11th hour strategic investment, or all over

September 22, 2009 by Dave Haynes

Ralph Idems is one of the truly, truly nice people in this industry, and I was saddened and frustrated to read recently chatter that the out of home sector had grown so wobbly through the recession that his business, Vertigo Group, had been forced to declare bankruptcy.

Idems and business partner Chris Bolton had built up a healthy top tier client portfolio among the major out of home companies in North America and Europe, building weather-sealed and rugged enclosures from backlit and more recently LCD-driven mall and street advertising signs. The Toronto-based company, among other things, engineered the enclosures that are used by that company that has screens on bus shelters along Las Vegas Boulevard. About 10,000 ad faces in North America were made by Vertigo.

The company was known for its high quality and therefore BMW pricing in a marketplace that, if there was buying going on, was looking for the lowest bidder. There is a massive pipeline in hand but the working capital was not there to go after it.

Ralph sent me a note asking if I could mention what was up.

The company is being sold in two packages
 
One package is the Toronto sheet metal fabrication facility, and the other is the Brand, IP, products, Customer list, and the Toronto Integration facility.
 
The main reason for the decision to place the company into bankruptcy was the inability to raise the necessary financing to bridge the company during the downturn in the OOH industry. We still hope that a strategic investor may surface that understands the business and our position within it.
 
An investment circular is available. If there is no 11th hour rescue “the company will be sold in pieces to the high bidder.”
 
Idems is unsure what he will be doing. If you want to be in touch: ralph.idems {at} gmail.com  

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