Ailing French memory maker Dane-Elec granted bankruptcy protection
We shall totally reorganise within two months - bosses
French memory manufacturer and distributor Dane-Elec has bought itself some time to plot a turnaround strategy after being granted bankruptcy protection by a court in its native country.
The firm was spooked by a string of nasty half year results and entered the "safeguard procedure" on 17 October, which gives it six months to cut costs and restructure.
"The future plan has two aims which are to reboot sales whilst continuing to streamline costs," the business said in a statement.
"Dane-Elec Memory will be able to operate under normal conditions, giving it the margin it needs to finalise and then implement its recovery plan," it added.
Management plan to have redesigned the strategy within two months, the company said.
The Dane-Elec Memory and Dane-Elec trading entities are covered by the bankruptcy protection.
In the half year to 30 June, group sales collapsed to €33.3m (£26.7m) from €47.8m (£38.7m) in H1 2011. Losses shrank from €6.5m to €5.7m (£4.6m), although Dane-Elec said it shaved off €2m "in payroll and external expenses".
Dane-Elec said it has also outsourced logistics in overseas subsidiaries this year and plans to close its manufacturing plant in Ireland by year-end.
Net debts were €18.2m at the end of June, down some €3m since the start of the year. ®