Loewe pushes future concept by restructuring in self-administration
Loewe is intensifying its comprehensive future concept. The Franconian technology company aims to make a fresh start with innovation, being significantly leaner and even more internationally set up and with strong partnerships and new products.
Kronach, 03 May 2019. – Loewe Technologies GmbH is intensifying the restructuring of the company in self-administration. "As in the industry as a whole, our business will also be severely impacted by the continuing weakness of the television market," emphasises Loewe CEO Dr Ralf Vogt. "Our relevant market segment in the upper price range has declined by 20 per cent in the current quarter. We have therefore decided to thereby to accelerate the further restructuring of Loewe as part of our strategy for the future."
Self-administration provides companies with a legal framework for repositioning themselves in close consultation with creditors during ongoing business operations. Corporate responsibility remains in the hands of the management, which controls the restructuring itself. The management is supported by Reiner Denzler (DDHW) and Dr Sebastian Braun (Reinhart Kober Grosskinsky). Self-administration is always possible when companies take early action in the event of economic problems and there is sufficient room for manoeuvre for a solution. "Loewe's business operations will continue without restrictions during the reorganisation," emphasises Ralf Vogt. "We can execute all customer orders on schedule and will also settle our supplier liabilities arising during the process." The wages and salaries of the more than 500 employees are secured during the restructuring phase.
The court has appointed lawyer Rüdiger Weiss of the Wallner Weiss law firm, which specialises in corporate restructuring throughout Germany, as the preliminary administrator. He supervises the restructuring process in the interest of the creditors.
"Only a few weeks ago, Loewe's management started to make the brand and the entire company successful again," said Ralf Vogt. "We have come to acknowledge that this had to be done faster and more consistently than we had assumed at the beginning of the year. Nothing changes in the cornerstones of our future concept."
Intensification of Loewe's future concept
"We make technology for people" under this heading, Loewe is developing from a pure television manufacturer to a systems provider for technologies in networked home entertainment with special expertise in customised vision and hearing. “We are systematically transforming Loewe as a technology company across all the key strategic areas. Based on our own strengths, we are relying even more than before on international cooperation," says Ralf Vogt. In addition to the well-established partnerships with the Chinese company Hisense and the Korean display supplier LG Display, Loewe recently announced an extensive cooperation with the Japanese trading and technology company Toyoichi.
Expansion of the Loewe range
In addition to the TV sector, we will invest more in audio solutions in the future," says Ralf Vogt. "To this end, we are expanding our audio location in Berlin, which we established last year." First and foremost, however, additional product categories that are compatible with Loewe will be created and will be offered under the brand's umbrella in Asia and Latin America, among other regions. In addition, platform applications and digital services, systems and applications for the networked home are planned. Loewe is currently working intensively on a modular home entertainment system that will be presented for the first time at this year's IFA in Berlin.
Omni-channel approach to sales
With regard to sales, Loewe will continue to expand its tried-and-tested partnership with qualified retailers, especially in German-speaking countries. "As part of our omni-channel approach, we are also increasing the visibility of the brand through online sales, especially to a younger audience. Planned new product categories, for example in the audio sector, are particularly suitable for this sales channel," says Peter Nortmann, Managing Director for Marketing and Sales.
Concentration on core business areas
Against the background of decades of experience, Loewe will continue to expand its special competence in product development in particular and, together with partners such as Toyoichi, apply it in other fields. Among other things, joint software developments are planned here for front-end solutions, such as mobile applications in India.
"In the future, Loewe will focus even more intensively on its core competencies, core processes and key activities. This means an even more consistent approach to working as part of an international partner network," stresses Ralf Vogt. Both create the basis for a comprehensive structural and personnel transformation of the Loewe organisation and a streamlining of the entire company.
Loewe. We invented the television.
Until today Loewe products represent timeless design, innovative technologies, developed and manufactured with the precision and reliability of German engineering. The manufacturer of premium televisions and audio products, headquartered in Kronach, Bavaria in Upper Franconia, is continuously shaping the home entertainment of tomorrow – with passion, enthusiasm and impressive know-how. Loewe products have been perfected down to the last detail and additionally they are also durable and economical in their energy consumption. Modular technology, premium materials, precise workmanship and regular software updates guarantee the sustainability of Loewe products.
Founded in 1923 by the brothers Siegmund and David Ludwig Loewe, Loewe presented the world´s first electronic film transmission at the 8th Berlin Radio Exhibition in 1931, earning a mention on the front page of the New York Times. The brilliant inventor and physicist Manfred von Ardenne, Loewe’s Chief Engineer, came up with the technology. This marked Loewe’s invention of the television. Loewe also developed the first portable television. And that’s not all. Loewe Art 1 – now a design icon – was exhibited in the New York Museum of Modern Art (MoMA) in the 1980s.
Press contact for further information.
Loewe Technologies GmbH
Dr. Roland Raithel
+49 (0)9261 99-217