Loewe latest brand to fall foul of recession, files for insolvency
Loewe, the premium German consumer electronics brand, is in trouble. It has filed for insolvency amid fears that if it doesn't find a buyer before the end of the year it will close its doors completely.
It has though revealed that six parties are interested. "We have six bids from investors from which we will choose in the next four weeks," said CEO Matthias Harsch to Reuters. Without serious additional funding, he revealed that the company only has sufficient funds to keep it running until the end of 2013.
The Loewe brand has suffered during times of austerity in competition with rival TV manufacturers such as Samsung and LG. It does not make its own panels and is targeted at the higher end of the market, opting for quality aesthetics for its sets rather than looking to keep costs down.
In July it struck a strategic partnership technology with Chinese manufacturer Hisense, but that has not improved the German company's finances. For the first half of 2013, its sales slumped by 39 per cent and subsequently posted a net loss of 26.7 million euros (£22.3 million).
Its shares have dropped 50 per cent since the news was made public today.
In early 2012, rumours circulated that Apple was considering buying Loewe for its iTV project but they have calmed down since.