Business News

Financing of schlott gruppe AG no longer safeguarded

Tuesday 18. January 2011 - schlott gruppe committed to reliable customer service

Management Board assessing corporate rescue through insolvency proceedings;
Focus on securing jobs and assets
Following the sudden and unexpected breakdown of negotiations with a prospective investor at the end of last week, proposals put forward at a meeting with the company’s banks for the purpose of securing additional funds for the sustained financing of schlott gruppe AG today also failed. Thus, the continuation of schlott gruppe AG as a going concern is no longer viable.
“The Management Board will now swiftly assess the possibilities of rescuing the company by way of insolvency proceedings in order to secure as many jobs and assets as possible and ensure that competition within the printing industry is safeguarded,” said the CEO of schlott gruppe AG, Bernd Rose. He went on to say that the Management Board considered the instruments available under the German insolvency statute as a valid opportunity to position schlott competitively within the marketplace.
“schlott gruppe will make every effort to serve its customers with the same quality and reliability to which they have become accustomed” added Rose. “Many customers and market players have a strong personal interest in the continuation of schlott gruppe as a company.”
For the past two years, schlott gruppe AG has been undergoing a far-reaching restructuring process. Among other things, the company’s cost structures were streamlined by a considerable margin and across the board, while printing capacity was adjusted in line with market conditions. “However, these measures have proved insufficient to compensate for the unforeseen severity of the price slump for print products” said Rose. “Additionally, the company’s financial performance has been adversely affected by rising commodity prices.”