Insolvent Handlebar Maker L&E Continues Production
SOLINGEN, Germany – Lüttgens & Engels GmbH & Co. KG (L&E) filed for insolvency already on December 20, 2013. But the company that ran into financial problems due to “extreme price competition”, is continuing its production of handlebars, headsets, seat-posts and brakes for customer like Dutch Royal Gazelle.
According to receiver Robin Schmahl of Law and Accountancy firm D’Avoine, Teuber und Neu Rechtsanwälte (ATN) a final decision on the future of L&E will be made March 1, 2014. Up to that date the 30 employees will keep production running as the order-book is still filled.
Tube and metal processing
Founded in 1898 the Solingen based tube and metal processing company headed by GM Dr. Tilmann Schultes is producing hi-end components for the bicycle as well as powered two-wheeler industries. In the bicycle sector the company’s biggest customers are based in the Netherlands.
Extreme price competition
According to the receiver the bicycle business accounts for up to 30% of L&E’s total sales as its biggest customers are scooters and motorcycle producers. Next to that the L&E business is moving more towards the powered two-wheeler sector. Receiver Schmahl noted that the bicycle business is extremely tough due to, “Extreme price competition that is putting lots of pressure on all suppliers – not only in the bicycle sector but the entire two-wheeler business.”
Sales office in Taiwan closed
That price pressure is the major reason for L&E’s insolvency. He also pointed out that the company’s sales office in Taiwan was closed last year and that L&E’s subsidiary in Poland isn’t affected by the insolvency as it is an independent company.