Loewe relies on favorable equipment for salvation

Loewe relies on favorable equipment for salvation

TV manufacturer loewe, struggling for survival, wants to turn things around with cheaper products and a focus on networking. "The classic television market and the classic business model no longer exist, group CEO matthias harsch said on thursday at the IFA electronics trade fair in berlin. Loewe must redefine itself.

After the IFA, loewe plans to launch a television with a 32-inch screen diagonal for about 800 euros. This is cheaper than the previous loewe prices, but more expensive than numerous competitive offers. The company wants to offer the more expensive premium models in every market segment, harsch emphasized. "Loewe has always made premium and will continue to do so." The company wants to convince customers with, among other things, design and better operation.

Loewe has been on the market for 17 years. July under judicial protection. The protective shield, which allows the club to reorganize on its own, can be maintained for a maximum of three months according to the law. During this time, the company must raise fresh capital or face insolvency. Loewe is currently in talks with more than ten investors, said harsch at IFA. The financing by the banks is still secured until the end of march.
"We have prepared the company in such a way that it is now an interesting investment object in terms of brand and structure, said harsch to the dpa. "You can’t do more than that." In the worst case scenario, the company would be faced with a scenario "where we would have to say that’s it". There have been many discussions with investors who want to develop loewe further. "Someone who buys only the brand, I could present tomorrow." It was a matter of finding the right investor. "And I am convinced that we will succeed", said harsh.

Loewe will maintain the production of high-end devices at its home location in kronach, upper franconia: "our customers want ‘made in germany’ in this segment, even in china or russia.", stressed harshly. Competition and labor costs do not allow us to build cheaper equipment in germany. "But the core in kronach must stay."

Loewe had been pushed to the brink of the abyss by weak christmas business last year. The company invested a lot of money in equipment that sold poorly. "That almost broke our neck", chief financial officer rolf rickmeyer admitted at the annual general meeting in july. Now, in a change of strategy, loewe also wants to enter the rough electronics market more intensively. At the IFA, the company will be showing a circular showroom island where various lice devices can be demonstrated.