German Luxury TV manufacturer, Loewe will cease operations today, July 1, 2019 due to insufficient funds for the business. The news came in from Spiegel Online last week after the company announced the closure to its 400 employees. Although it probably could have survived another six months or so according to Telecommpaper, Loewe decided not to trudge on any longer than necessary.
"For reasons of insolvency law, we are therefore obligated to protect our creditors to provisionally suspend operations on July 1, 2019 with the least possible cost burden," said Loewe managing director Ralf Vogt.
The original German statement was reworked into English for What Hi-Fi stating:
"Earlier this week on the 25th June Loewe announced to the Germany press that the insolvency process has been escalated, with the management deciding to move from self-administration to standard insolvency proceedings. Whilst Loewe had the support of its suppliers, distribution partners and customers it was unable to secure a loan required by its main creditors. As a result of the insolvency proceedings, Loewe will suspend business operations in Kronach provisionally from 1st July.
"Negotiations with potential investors continue apace with renewed impetus due to the reduction in liabilities a new investor would now incur. Plans are being put in place so that Loewe can continue to supply the majority of products to dealers in order to bridge any gap between the current and potential future businesses. It remains business as usual for the UK/IRE daily operations which are managed by Loewe UK Ltd."
Loewe had been a pioneer in the early days of 4K TV with its Connect 55 TV. The Mimi Defined personalized audio technology was also groundbreaking in helping users customize alternatives based on the results of their unique hearing test. But Loewe's downfall had been several years in the making. Back in 2013, the German TV brand had been saved from the brink of bankruptcy by Munich-based private equity firm Stargate Capital. Loewe failed to capitalize on Far Eastern manufacturers that were offering similar technology at more affordable price points.
Going forward, Weiβ, the bankruptcy trustee will focus on trying to find a buyer for the rest of Loewe's business.