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TV maker Loewe struggles to survive

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TV maker Loewe struggles to survive
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German television maker Loewe has filed for court protection from its creditors while it restructures.

It is a last-ditch effort to turn around the loss-making business.

The constructor of high-end TV sets has been struggling to return to profit amid fierce competition from Asian rivals. It also makes Blu-ray players, DVD recorders, hard-disc recorders, multi-room entertainment systems and speakers.

The company, which is 29 percent owned by Japanese electronics firm Sharp, saw its losses almost triple to 29 million euros last year. It has been cutting jobs.

Under the creditor protection law Loewe now has up to three months of breathing room to try to fix its finances and avoid insolvency.

Loewe said in a statement on Tuesday that it would use the time to drastically expand its existing restructuring programme, increase its share equity and revamp its brand strategy.

“Since we remain solvent, we can complete all customer orders on schedule and also settle our accounts with our suppliers which are accrued during the creditors’ protection period,” Chief Executive Matthias Harsch said in the statement.

With Reuters