The German home electronics company initiated bankruptcy proceedings on Monday after heavy losses in recent years. The company filed for court protection after talks with Taiwanese electronics maker Sampo and Turkish television manufacturer Beko failed.
The head of the company said that only new investment could save it from being broken up and sold in pieces to pay off creditors. Filing for bankruptcy could rid Grundig of debts and pension obligations. The company says that the bankruptcy covers only Grundig’s administration, research and marketing divisions—profitable divisions such as car radio manufacturing and satellite equipment are excluded.
Grundig has been in the electronics business since the 1950s.
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