German premium consumer electronics manufacturer Loewe Technologies has decided to stop business operations on 01 July. The company does not have the financial means to continue to function and the creditors did not want to concede another loan.
Loewe is obliged to protect creditors based on insolvency rules, said CEO Ralf Vogt. It has also informed the employees on the operational shutdown, the solicitor Rudiger Weiss said. Since May, Loewe has been undergoing insolvency proceedings in self-administration, overseen by a solicitor.
Loewe had to face financial problems recently. The private equity firm Stargate Capital has owned the firm since 2014. Stargate Capital works with credit facilities offered by the investment firm Riverrock. The union IG Metall criticized Riverrock, accusing the firm of waiting until Loewe is finally broken “to earn money with the rubble of the company,” said the head of the union in Bavaria Jurgen Horn in a statement.
The solicitor Rudiger Weiss said that Loewe had the financial means to last another six months without finding an investor. Weiss also added that the company had already attracted potential investors.