• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About Strata-gee
  • Contact Us
  • Free Newsletter
  • Sponsor Strata-gee
  • Privacy Policy
  • Latest Posts
  • Strategy
  • Technology
  • Products
  • People
  • Statistics
  • Financial
  • Legal
  • Economic
  • Events

Strata-gee.com

Strategy in TECH...

Register for CEDIA Expo
You are here: Home / Financial / The Picture of Its Future is Still a Little Fuzzy at Loewe AG

The Picture of Its Future is Still a Little Fuzzy at Loewe AG

November 20, 2013 by Ted Leave a Comment

Photo of Loewe flags

German luxury TV manufacturer Loewe AG said today that it is in final stages of discussions with two different potential investors or buyers. The company, once the source of hopes by U.S. specialty A/V dealers for a more profitable step-up video line, has yet to emerge from the bankruptcy protection it invoked earlier this year.

See more on this worldwide luxury television manufacturer who is struggling to survive…


A few years back, Loewe was the darling of the specialty A/V retail market. It offered the promise of delivering a high quality high-definition product that could be shown and sold to an upscale clientele…and give the retailer a more livable profit margin as compared to the mass marketers. The line grew quickly in the U.S. and seemed to be well-positioned.

Savant

But the TV market began to shift quickly. And the mainstream manufacturers started to get smarter…and also began offering higher technology. Most importantly, as things got hyper-competitive – prices started dropping like a rock…no, a boulder!

Not immune to a competitive market…

Loewe, although clearly serving the luxury market, was not immune to the market’s prices shifting downward. Although Loewe could successfully sell at prices over the market – the delta or gap above mainstream prices – could only be so large before sales would drop off.

If Loewe could maintain their delta, they could maintain their sales by holding their relative position. But it soon became obvious that this wan’t possible. In 2008, Loewe sales were €374 million ($500 million). Sales slid every year after that, finally dropping to €250 million ($335.5 million) in their 2012 annual report.

Profits were slammed…

Photo of Loewe TV
From the Loewe AG 2012 Annual Report

And of course, profits were also slammed as a result of the sales declines. In 2008, Loewe reported net profits of €18.9 million ($25 million). But by 2012, the company was losing €44.5 million ($59.7 million).

AudioControl Single Zone Amps

Now mostly sold in Europe, Loewe can only claim significant market share in Germany (7.9% according to their 2012 annual report) and Switzerland (7.6%). In most other European countries the market share figures fall into low single digit to low-decimals.

Not naming names…


With the onset of their deteriorating financial condition, the company began seeking partners/buyers/investors. Without naming any specific names, the company says it has held discussions with six different potential buyers in mid-2013.

In the wake of their bankruptcy filing in October 2013 – which followed a filing for protection from creditors in July 2013 – the company is running out of time before creditors convince the bankruptcy court to shut it down and liquidate.

In the final stages…

In today’s announcement, the company says it is in the final stages of negotiations with two buyers. Again, no names were released, but most of the European press suspect that at least one of these finalists is a major Asian manufacturer.

According to the website 4traders.com, Loewe management has presented their reorganization plan to the company’s creditors and the creditor’s were said to have approved them. However, these plans likely included the requirement of the entry of one or more investors. It is unlikely that the company can survive without a cash infusion.

While management is expressing optimism on the state of their negotiations, investors are holding their collective breath until a purchase agreement is fully negotiated…and signed.

Share this post:

  • Tweet
  • Click to share on Reddit (Opens in new window) Reddit
  • More
  • Click to email a link to a friend (Opens in new window) Email
  • Click to print (Opens in new window) Print

Like this:

Like Loading...

Related

eMarketer logo

Yikes! New Research Confirms It: Affluents are Moving to Digital Shopping

In news sure to send a chill through the backbone of every luxury retailer and manufacturer of every luxury product - electronics included - eMarketer is reporting that new research makes it clear that Affluents, loosely defined as those with household incomes over $100,000, are now shopping online in increasing…

December 4, 2013

In "Industry Trends"

Graphic of Funai products

Pioneer Pulls Out of AV

BREAKING NEWS In yet another sign of dramatic changes afoot that will literally change the face of the TECH industry for years to come - news comes out of Japan that Pioneer Corp. is planning to exit the AV business by selling off its entire AV division. This news follows…

May 15, 2014

In "Asian Connection"

Clare Controls logo

Clare Controls Appoints the New York Marketing Team as Its Metro NY Rep

Clare Controls, a mid-level manufacturer of home automation products, announced on Tuesday that it has appointed the New York Marketing Team as its sales representative for the New York Metropolitan market. The appointment is effective immediately. See more about Clare Controls and this appointment... Sarasota, FL-based Clare Controls is a…

December 11, 2013

In "Brands"

Filed Under: Financial, Manufacturers, News, Pivot Point, Strategy Tagged With: Loewe

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Search

Sign-Up for Our FREE Newsletter

loader

Latest Posts

T-Day+1: Tariffs…And So It Begins…

**NEW Update 7/11/25** - See Updated Tariff Programs from Around the … [Read More...] about T-Day+1: Tariffs…And So It Begins…

Latest Financial Results for Samsung and LG Show Impact of Trade Troubles

Two major South Korean tech behemoths, Samsung Electronics and LG Electronics, … [Read More...] about Latest Financial Results for Samsung and LG Show Impact of Trade Troubles

  • T-Day+1: Tariffs…And So It Begins…
  • Tariffs: New Business Survey Shows Companies are Already Feeling the Pain
  • Harman Luxury Audio Group Names Progressive Custom Integration as Rep for 7 Territories
  • Happy Independence Day!

Categories

Sponsors

Crestron Register for Expo
AudioControl Single Zone Amps
Sonance James Small Aperture
Savant
Oasys Residential Technology Group

Tag Cloud

acquisition Amazon Apple AudioControl B&W Bowers & Wilkins CEDIA CEDIA Expo CES Control4 Core Brands COVID-19 Crestron D&M Holdings Denon Emerald Expositions Foxconn Gibson Brands Gibson Guitar Google headphones Henry Juszkiewicz Hon Hai Precision Industry Co. housing starts Integra Joe Kiani LG Masimo Nortek OLED Onkyo Panasonic patent infringement Pioneer Samsung Savant Sharp smart home SnapAV Snap One Sonos Sony Sound United SpeakerCraft Toshiba

Footer

Got News?

HEY PR & Marketing Pros: Have NEWS for Strata-gee readers?

Send it to: HotNews@strata-gee.com

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Sponsor Strata-gee

Strata-gee Ads

Archives

Translate

Ted Green Bio

A former dealer, manufacturer, distributor & more. Focusing on business strategy, my goal is to help you make better decisions for greater success.

Follow Ted Green

  • Facebook
  • X
  • LinkedIn
  • Instagram

Copyright © 2025 Strata-gee.com · The Stratecon Group, Inc. All Rights Reserved · Log in

%d