High-end TV maker Loewe to close
Loewe Technologies sinks
Despite a rescue effort a few years back, Loewe Technologies, the German premium consumer electronics manufacturer, has now called it a day… and that day is July 1st 2019.The company has announced the cessation of business operations from the start of next month due to financial difficulties which its creditors have stepped away from by refusing to secure further loans. CEO Ralf Vogt explained that the company is bound by insolvency regulations to protect their creditors from financial issues and it had therefore informed its 400 workers of plans to close down after 96 years of operation.This move may not have come as a complete surprise to industry analysts as Loewe were rescued a few years ago and even as recently as May this year were undergoing insolvency proceedings under ‘self-administration.’
The rescue package back in 2014 transferred ownership of the company to Stargate Capital with credit facilities overseen by investment firm Riverrock. The current situation has led to accusations by the IG Metall union that Riverrock has only kept the company going so it can capitalise on Loewe Technologies’ impending breakup.
While Loewe is hardly a household name in the UK, their high-end products are sold in the likes of Selfridges and Harrods, where they attract premium prices. As industry analyst Paul Gray from IHS Markit pointed out in a tweet about the closure, the situation was sad, “but in a business driven by scale not surprising” especially where global TV firms like Panasonic, LG, Sony and Samsung can manufacture and sell at the tiniest of margins.
Do you own a Loewe TV? If so, how do you think their impending closure will affect you? What does this say about the wider TV market? Let us know in the discussion thread.
Source: www.telecompaper.com, www.sueddeutsche.de
Image Source: Selfridges www.sueddeutsche.de
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