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Mayer & Cie files for insolvency, to scale down capacity
06 Oct '09
2 min read
German circular knitting machine manufacturer, Mayer & Cie GmbH recently filed an insolvency petition in the local court of Hechingen, Germany. The reason put forward by the company was a drastic dip in orders for its machinery.
Mayer & Cie observed that orders for its textile machinery dipped by nearly 70 percent in spring 2008 and reduced working hours of the company, May 2008 onwards. Total sales in 2008, shrank by 32 percent, mainly due to a weak second half of the year.
In the period January- March 2009, it worked for just 2.5 days per week and in the second quarter, with better utilization of resources and an improved order backlog, the company increased its working days and operated on just, one day off in a week.
In that period, Mayer & Cie was of the opinion that, market conditions had bottomed out and it could operate profitably again, however, by August, trade had slowed, with new orders for September drastically below those received in previous months.
Against the backdrop of falling sales and additional difficulty, due to delay in shipments, the company said that, it is not in a position to meet its payment obligations anymore and therefore had to file for insolvency.
The company will try to restructure its process and scale down its production capacity, in reality with demand in the markets in current times. It has also informed that, this insolvency does not affect Mayer Industries in the USA and Mayer Braidtech in Germany.
In the concluding statement, the company said that, in consultation with the insolvency administrator, Mayer & Cie will continue to be in business and it would appreciate it if, their customers maintained business connections and continued to place orders with us.
Mayer & Cie observed that orders for its textile machinery dipped by nearly 70 percent in spring 2008 and reduced working hours of the company, May 2008 onwards. Total sales in 2008, shrank by 32 percent, mainly due to a weak second half of the year.
In the period January- March 2009, it worked for just 2.5 days per week and in the second quarter, with better utilization of resources and an improved order backlog, the company increased its working days and operated on just, one day off in a week.
In that period, Mayer & Cie was of the opinion that, market conditions had bottomed out and it could operate profitably again, however, by August, trade had slowed, with new orders for September drastically below those received in previous months.
Against the backdrop of falling sales and additional difficulty, due to delay in shipments, the company said that, it is not in a position to meet its payment obligations anymore and therefore had to file for insolvency.
The company will try to restructure its process and scale down its production capacity, in reality with demand in the markets in current times. It has also informed that, this insolvency does not affect Mayer Industries in the USA and Mayer Braidtech in Germany.
In the concluding statement, the company said that, in consultation with the insolvency administrator, Mayer & Cie will continue to be in business and it would appreciate it if, their customers maintained business connections and continued to place orders with us.
Fibre2fashion News Desk - India
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