LOEWE LUXURY TV PRODUCTION STOPS THIS WEEKEND

According to Spiegel Online, Loewe is bankrupt and planning to shut down operations this weekend.

Loewe’s managing director Ralf Vogt told Der Spiegel:

For reasons of insolvency law, we are therefore obligated to protect our creditors to provisionally suspend operations on 1st July 2019 with the least possible cost burden.

The solicitor overseeing the insolvency proceedings, Rüdiger Weiß, stated:

The brand was pledged to the holding company Riverrock, which had given loans to the Loewe owner.

Unfortunately, the luxury telly brand was denied a further nine million euro investment by the British investor.

According to a Telecompaper report:

The company does not have the financial means to continue to function, and the creditors did not want to concede another loan.

Weiß said that Loewe’s 400 employees had been informed regarding the operational shutdown.

It’s not the first time Loewe has run into financial difficulties. The company filed for bankruptcy in 2013, but an 11th-hour deal saw the brand saved by Munich-based Stargate Capital.

That said, it is business as usual in the UK as we reached out to Loewe’s UK representatives who responded with this statement:

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.

We are fans of the company’s luxury OLED bild range of televisions; however, it appears that strong challenges from Far Eastern manufacturers who can offer similar technology at more affordable prices may have taken its toll. It would be a shame for the 96-year-old company to bow out like this, so we are hoping it finds a new guardian angel in time.