The Channel logo

News

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

Opinion

Houses of Parliament in night-time

Andrew Orlowski

Come on everybody, let's upload all our stuff into Government by Cloud
Joe Tucci EMC
frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties

Features

Alistair Darling and Alex Salmond debate Scottish independence
You keep the call centres, Hamish, we'll take the banks
Internet of Things
Everyone loves those Things, just not on each others' terms
No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever