Nuremberg, Germany - Grundig AG filed for bankruptcy in the Local Court, here, yesterday, after last minute talks with a potential investor fell through.
The venerable German CE maker filed what is called 'a motion for a debtor in possession' and the court named Dr. Seigfried Beck as the temporary insolvency administrator. He will have control over Grundig's finances and determine whether the company can be restructured. The company said its banks will continue to finance the continuation of the business and the company will keep operating.
Grundig had be conducting investment talks with Turkish TV maker BEKO, but those talks were discontinued on April 7 and were fully rejected by BEKO the following day.
The firm's board of directors said in a written statement that they are still searching for potential investors, but would not release the names of any potential suitors.