Movement Shock: BNB Concept To Declare Bankruptcy

by Ariel Adams (RSS feed)
Jan 18th 2010 at 6:01PM

Shocking news in the world of watch movements as BNB Concept looks like it is going to close its doors. The highly respected complex watch movement maker looked like a star of the independent high-end watch industry. BNB Concept was responsible for the design and manufacture of a number of ultra complex (and expensive) watch movements for many watch brands. For example, its seems as though most of the tourbillon movements that aren't in-house made by a brand are sourced from BNB Concept. They even began their own exclusive watch brand with the Confrerie Horlogere. Founder Mathias Buttet really changed the watch industry over the last few years, and BNB Concept is, and has, been in very high demand. Now that is all over. So what happened?

Unpaid bills. Literally millions of them. BNB Concept has no cash. Problems arise not only in account payables, but account recieveables. While BNB Concept was doing great on paper. No one was paying them. With dozens on customers who haven't paid, BNB Concept has an utterly insufficient cash flow. It looks as it is another victim of the hurting luxury watch world. Because BNB Concept's customers could not pay it, BNB Concept itself had not enough cash to stay in business. Reports all suggest an extremely expensive overhead. With lots of highly trained labor, high-tech facilities, and not to mention lots of expensive machinery, BNB Concept was underwater before it knew what hit it.

The official announcement of their bankruptcy is expected to come soon. This will likely mean that the company will be closing, as no one wants to buy them and end up trying to collect from customers or paying all the bills. Though to be honest it isn't 100% clear what they will do. Hopefully the "talent" will be transferred elsewhere. While the news is sad for lovers of high-end complex independent watch brands, it is sadder for the watch industry as a whole. Consider it a major step back in giving independents a chance to assert their innovative designs without having to spend years themselves designing and making movements.

Via Business Montres.

Ariel Adams publishes the luxury watch review site aBlogtoRead.com.

Tags: bankruptcy, bnb concept, BnbConcept, close, mathias buttet, MathiasButtet, movement, swiss, watch