The Channel logo


By | Paul Kunert 24th October 2012 08:57

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. ®

comment icon Read 1 comment on this article alert Send corrections


George Osborne, photo: HM Treasury
shutterstock_183801788_container ship

Chris Mellor

The SAN growth glory days are well and truly over, so where next?

Tom Whipp

Insurance industry insider tells all
Crypto fingers


Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire
The Seeing Eye by Valerie Everett, Flickr, CC2.0
Follow the money – or, at least, our projections
Boats storm girl photo via Nikolina Mrakovic
The puppets from Team America: World Police gather at a bar for drinks.