German Loewe, considered a direct competitor to Bang & Olufsen, seeks debt protection in a goal to restructure its business. Loewe’s stores will continue normal operation or now.
TV-maker Loewe seeks bankruptcy protection
When Danish Bang & Olufsen had its worst period ever German Loewe enjoyed a range of profitable quarters during the outbreak of the financial crises. However, in recent years it has went from bad to catastrophic for the German maker of luxury AV video and audio products.
Bloomberg reports that Loewe has applied for debt protection under German law, a process comparable to Chapter 11 in the U.S. law. During the period Loewe hopes to restructure its business with help from partners and investors, Loewe’s chairman Matthias Harsch says.
Loewe seeks debt protection in a goal to restructure its business
For several years, Loewe has focused on its ‘made in Germany’ strategy but it has failed, which is why Loewe wishes to restructure its business by implementing a new strategy. Loewe has not publicly discussed its new strategy. All Loewe stores will continue normal operation for now, the company confirms.
Loewe has not been profitable in the past three years. In the last quarter, revenue fell to 43.5 million Euro from 66.6 million Euro in the same quarter last year. During the quarter Loewe recorded a 9.9 million Euro deficit.