It has been reported that TV manufacturer, Loewe, will close on 1 July due to insufficient funds.
However, a spokesperson for Loewe in the UK said “it’s business as usual in the UK at the moment” and that more detail will be announced within the next few days.
“Earlier this week on the 25 June, Loewe announced to the Germany press that the insolvency process has been escalated,” the spokesperson continued, “with the management deciding to move from self-administration to standard insolvency proceedings.”
Indeed, German publication, Spiegel Online, reported yesterday that Loewe was bankrupt and planning to shut down operations this weekend.
In addition, solicitor, Rüdiger Weiß, told Reuters: “The brand was pledged to the holding company, RiverRock, which had given loans to the Loewe owner.”
According to the insolvency administrator, less than half a million euros were in the accounts, claimed Spiegel Online. A further loan of nine million euros from RiverRock was denied and now the futures of approximately 400 employees at the company hang in the balance. They have been informed of the business shutting down.
The UK spokesperson continued: “Whilst Loewe had the support of its suppliers, distribution partners and customers it was unable to secure a loan required by its main creditors. As a result of the insolvency proceedings, Loewe will suspend business operations in Kronach provisionally from 1 July.
“Negotiations with potential investors continue apace with renewed impetus due to the reduction in liabilities a new investor would now incur.
“Plans are being put in place so that Loewe can continue to supply the majority of products to dealers in order to bridge any gap between the current and potential future businesses.”
The German luxury TV brand has been around since 1923. In recent years the company has faced financial struggles; in 2014, private equity firm Stargate Capital, from Munich, stepped in to acquire Loewe and promised future investment “totalling tens of millions of euros”.
In 2013, Loewe accelerated its company restructuring using a form of self-administration available under the German legal system. This provided a legal framework for re-organisation while the business to continued to operate as normal.
Earlier this year, the manufacturer announced the launch of its bild 5 OLED TV, inspired by retro Sixties décor and available in 55-inch and 65-inch sizes and with an optional sound bar.
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