Television manufacturer Loewe threatens to go bankrupt and stops production – update

The German TV manufacturer Loewe cannot meet its payment obligations and stops making TVs. The company has no money left to continue its activities. In 2013, Loewe also filed for bankruptcy, but the company was then rescued by investors.

Loewe management says in a statement to the German newspaper Die Zeit that creditors are not prepared to provide new loans. The company does not know whether it can still pay employees. According to director Ralf Vogt, the company is obliged to its creditors to suspend its activities for the time being in order to minimize costs.

The work will stop on 1 July. The majority of the four hundred employees will then no longer have a job. A small core team remains active to complete ‘the investment process’. According to the director, it concerns ten to fifteen people.

A German union says the British investment company RiverRock is responsible for the bankruptcy. He would no longer give money after tens of millions of euros had previously been provided. Loewe is said to have drawn up a future plan itself, which would show that production in Germany is no longer feasible, even if bankruptcy is averted.

Loewe has been around since 1923 and was one of the founders of television in the early years. In recent decades, the brand focused on making expensive design TVs. In recent years, the brand has released a number of OLED TVs from its Bild series, based on LG panels. In 2013, Loewe also filed for bankruptcy, but then the company was rescued by a group of investors.

Update, October 28, 2020: Clarified that there was no bankruptcy yet.