Germany’s last high-end television maker Loewe is seeking protection from its creditors in an attempt to reboot its business. The move to file for insolvency is intended to win time for finalizing talks with investors.
Loewe had filed for insolvency proceedings under the control of its own management, the ailing German luxury TV maker announced Tuesday.
The move was aimed at paving the way for finalizing a restructuring plan, which would include an outside investor and which should be presented to the company's creditors in the course of the next three months, the Kronach-based company said.
Noting that the TV maker could finance its operative business until the end of 2013, Loewe Chief Executive Matthias Harsch said it was extremely likely that management would be able to name an investor as early as the end of October.
“We have received offers from six different investors on which we are going make a decision within the next four weeks,” he told Reuters news agency.
On Tuesday, Harsch didn't give the names of potential investors. But in an interview for the German news magazine Der Spiegel in August, the CEO said he was in talks with television makers in Asia such as TCL, Changhong, Skyworth and Hisense.
Loewe, which specializes in high-end, flat-screen TV sets that sell for up to 5,000 euros ($6,761), has been hit by low-cost competition from Asia and is struggling amid increasing saturation in developed markets.
In the second quarter of this year, company revenue slumped by 15 million euros, causing Loewe's debt to soar to 50 million euros. As a result, Loewe announced further payroll cuts aimed at reducing its current workforce of 800 by another 160 workers in October.
uhe/msh (Reuters, dpa, AFP)