Published on October 28th, 2013 | by The GC Team0
Loewe announces new investor
Loewe today announced it has received a specific written offer from a bidder confirming commitment to a long-term investment, which will support the strategic realignment of the German manufacturer’s business.
Loewe was granted permission to carry out a self-administration insolvency process early in October, after filing for creditor protection in July this year under an instrument in German law that allows technically bankrupt but still viable businesses three months to restructure.
Commenting on today’s news, Matthias Harsch, Loewe Executive Board Chairman, said: “This means we have reached a crucial milestone that will put Loewe firmly back on track for success and underscores the attractiveness of the premium Loewe brand and the company as a whole.”
A statement released by the company said: “The process of assessing the offer has already begun. The next stage will see the Executive Board entering into negotiations with the interested parties to finalise the details of the purchase agreement. It is also possible that further potential investors may present specific offers.”
“It is now up to us to select the best financial partner for Loewe,” said Loewe Chief Financial Officer Rolf Rickmeyer.
The statement continued: “The entry of an investor is the latest building block in the strategic realignment of Loewe. In respect of the operating business, the company made some key directional decisions in July when it entered into a far-reaching strategic partnership with the Chinese company Hisense. The first concrete projects have already been launched, such as the development of a joint electronics platform for markets in Europe.”
Matthias Harsch added: “In conjunction with the new financial investor, the co-operation with Hisense constitutes a crucial building block in the process that will see the company transformed from a TV equipment manufacturer into the leading premium provider of smart home entertainment solutions.”
Loewe entered into partnership with Hisense earlier this year and has since reported that the collaboration is creating synergies in the areas of procurement, manufacturing, development, and sales.