Loewe AG and its subsidiary Loewe Opta GmbH to restructure under creditors’ protection proceedings “Schutzschirmverfahren”

• Talks with strategic partners and investors ongoing
• Extension to the restructuring concept – radical review of value addition and positioning strategy
• Strategic expansion of product range

Kronach, 26-7-2013 — /EuropaWire/ — Loewe AG and its subsidiary Loewe Opta GmbH are to restructure using “Schutzschirmverfahren” (creditors’ protection proceedings under its own administration). The Executive Board and management team have today lodged an application to this effect at Coburg Local Court. “Like the entire industry, the current market weakness for TVs is having a highly detrimental effect on our business”, says Chairman of Loewe, Matthias Harsch. “We have therefore decided to drive forward the remaining restructuring of Loewe using creditors’ protection proceedings.”

All other subsidiaries in Germany and elsewhere will continue to operate as normal and will not be involved in the proceedings. After receiving approval for the proceedings, Loewe will continue to be managed by its Executive Board and can use the wide-ranging opportunities offered by the new “Schutzschirmverfahren” to restructure the company. The business at the Kronach site will continue without any restrictions. The companies’ workforce of around 800 people will be informed directly about the state of things and the planned action.

Legislators introduced creditors’ protection proceedings last year. These are clearly structured proceedings using which companies can restructure and turn themselves around thoroughly within a few months. Loewe AG and Loewe Opta GmbH are solvent which means that the main requirements for creditors’ protection proceedings in law are satisfied. Corporate responsibility will continue to be in the hands of the company itself (“self-administration”). Creditors’ protection proceedings also offer major benefits to shareholders because their shares retain their value if it is completed successfully. “Our aim is still to restructure Loewe with the help of strategic partners and investors”, continues Matthias Harsch.

The Executive Board and Supervisory Board of Loewe AG decided on creditors’ protection proceedings because in the current difficulties being experienced by the market and therefore the company, this offers the best way of successfully implementing the restructuring process of Loewe which has already been started in the interests of all stakeholders and thus securing Loewe’s future. “Loewe remains fully able to trade even under protection”, underlines Rolf Rickmeyer, Restructuring and Financial Director at Loewe AG. “And 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.” Matthias Harsch adds, “In addition to excellent service, our dealers and end customers will continue to receive first class smart home entertainment systems in the Loewe quality.”

Main points in the strategic restructuring
Under creditors’ protection Loewe will develop a comprehensive restructuring plan together with its creditors. The existing restructuring concept will be drastically extended against the backdrop of increased global competition. At the same time a comprehensive strategic restructuring process will be carried out by means of a radial revision of our value addition and positioning strategy.

“The objective of our strategic restructuring is to continue to increase Loewe’s market share in the national and global premium market”, explains Harsch. “Synergies with a strategic partner in purchasing, production, development and sales will enable us to supply more units at the entry level of the premium market in the future.” This will create new opportunities in addition to Loewe’s main partners in classic trade outlets including in retail outlets in Germany and beyond. “One thing is certain for all Loewe markets in the future – we must provide our target groups with Loewe premium products where they want them.” says Harsch assuredly.

Another step in the restructuring process will be an increase in share equity to include both existing and new investors. This will further strengthen the equity available to the company.

Future brand strategy
The repositioning strategy also involves the continued development of the Loewe brand strategy. The new brand positioning “my perfect entertainment” developed over the last few weeks is based on Loewe’s traditional brand values – performance, design and individuality. In addition Loewe will reposition itself in the smart entertaining segment with a focus on user interface, TV apps, connectivity and software services. In particular Loewe will set new standards in the TV market on the basis of a completely newly developed software platform with the slogan “Joy of Use”. This will reposition the brand quickly together with a new pricing strategy.

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