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Loewe AG files for creditor protection in Germany

Loewe TV

Luxury TV manufacturer Loewe has filed for protection from creditors while it implements a re-structuring programme. The board says it has taken the action "to assist the company in implementing its restructuring programme and its new corporate strategy more quickly".

Under German law, indebted companies can submit an application for 'Schutzschirmverfahren' (a bit like Chapter 11 in the US) which gives them three months to restructure themselves while still maintaining control of the business, even if they are technically bankrupt.

Loewe's executive board has has submitted an application with the local court for Loewe AG and its subsidiary Loewe Opta GmBH to begin the process of Schutzschirmverfahren.

All other subsidiaries in Germany and elsewhere, including the UK, will continue to operate as normal. Business at the firm's Kronach site "will continue without any restrictions", the company says.

"After receiving approval for the proceedings, Loewe will continue to be managed by its executive board and can use the opportunities offered to restructure the company."

By Andy Clough

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Andy Clough

Andy is Global Brand Director of What Hi-Fi? and has been a technology journalist for 30 years. During that time he has covered everything from VHS and Betamax, MiniDisc and DCC to CDi, Laserdisc and 3D TV, and any number of other formats that have come and gone. He loves nothing better than a good old format war. Andy edited several hi-fi and home cinema magazines before relaunching whathifi.com in 2008 and helping turn it into the global success it is today. When not listening to music or watching TV, he spends far too much of his time reading about cars he can't afford to buy.