Published on May 9th, 2019 | by The GC Team0
Loewe in second self-administration process
Loewe Technologies GmbH is using a form of self-administration available under the German legal system due to its current restructuring process being hindered by the impact of continuing weakness in the television market.
The company said its relevant market segment in the upper price range has declined by 20% in the current quarter, and it has therefore decided to accelerate the further restructuring of the business as part of its strategy for the future.
In March this year, Loewe announced that its production facility in Kronach, Germany was to become an independent entity following a tie-up with Japanese Toyoichi Tsusho Co. Ltd., “a reliable and financially strong partner to further boost Loewe’s competitiveness and internationalisation,” the company said. Future plans of the business’s management, and strategic reorganisation of the Loewe Group, were regarded by Toyoichi to provide “a strong platform for success.”
This is the second self-administration for the German manufacturer. In 2013 it was placed into the insolvency process to protect it from creditors and give the business three months to find new investors.
Commenting on this recent move, Loewe CEO Ralf Vogt said: “Loewe’s business operations will continue without restrictions during the reorganisation. “We can execute all customer orders on schedule and will also settle our supplier liabilities arising during the process.”
The wages and salaries of the more than 500 employees are secured during the restructuring phase, the company said.
Vogt said the business’s strategy is beginning to show that it has turned a corner. “But we have to acknowledge that we needed to implement at a faster pace than we had assumed at the beginning of the year,” he added.
“Nothing changes in the cornerstones of our future concept but due to the market weakness in the premium segment we now require the protection that self-administration affords to complete our restructure plan.”
Loewe’s plan includes a growing focus on international partnerships such as its well-established partnerships with the Chinese company Hisense, Korean display supplier LG Display and extensive co-operation with Toyoichi.