Performance psychologists would no doubt baulk at Manroland Sheetfed’s description of itself as ‘the beleaguered German press builder’, but the reality is that Manroland Sheetfed, a German producer of sheetfed litho printing presses, has recently been forced to enter into insolvency proceedings with financial support from parent company, Langley Holdings.
The German word ‘Schutzschirmverfahren’ is essentially a legal term for ‘protective shield proceedings’, and in an official media statement, Manroland Sheetfed confirmed it is now ‘bracing itself and stakeholders for turbulent news and job losses, despite having a technologically advanced product portfolio’.
Anthony Langley, Chairman and CEO of parent company, Langley Holdings - a privately owned UK-based engineering and industrial manufacturing group who acquired Manroland Sheetfed in February 2012 – confirmed in a recent Charman’s Review: “The board has concluded that the situation is unsustainable and a major structural reorientation is needed in order to return to profitability on a ‘much reduced scale’. Langley attributed the company’s decline primarily to a ‘shrinking market for litho printing presses globally, with China representing the biggest drop - around 40% of historic sales’.
Through the Schutzschirmverfahren debtor-in-possession process, a company is able to restructure while its management remains in control, rather than being replaced by a court-appointed administrator. The process has been compared to Chapter 11 in the USA, which gives companies three months to restructure to avoid immediate insolvency.
Mirko Kern, the incumbent Manroland Sheetfed CEO, adds: “It is regrettable that a great many jobs will be lost but I call upon the workers council and the unions to co-operate with what we and restructuring experts have concluded are the necessary measures to arrive at a viable business and preserve the remaining positions.”
