Manroland Sheetfed enters insolvency proceedings

Manroland Sheetfed, a German producer of sheetfed litho printing presses, has announced it has entered into ‘Schutzschirmverfahren’, which means protective shield proceedings. In an official statement the company has described itself as “the beleaguered German press builder”, suggesting it is bracing itself and stakeholders for turbulent news and job losses.

The company says it is entering into insolvency proceedings with financial support from parent company, Langley Holdings, which is a privately owned UK-based engineering and industrial manufacturing group. Manroland Sheetfed was acquired by Langely Holdings in February 2012.

Schutzschirmverfahren is a German debtor-in-possession process in which a company can 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.

Manroland says that despite a “technologically advanced product portfolio”, sales at the company have been declining in recent years with “mounting losses”. Unsurprisingly, the decline has been attributed primarily to the shrinking market for litho printing presses, with China representing the biggest drop (around 40% of historic sales).

In his recent Chairman’s Review, Anthony Langely, chairman and chief executive officer of the business, said: “The board has concluded that the situation [at Manroland Sheetfed] is unsustainable and is currently considering its options.

“We are conscious, however, that a great many printing businesses, the vast majority of them privately owned SMEs, rely on Manroland presses and it is our goal that whatever solution we ultimately decide upon, the installed base will continue to be supported”

In its statement, Manroland says that a major structural reorientation is needed in order to return to profitability on a “much reduced scale”. The company has acknowledged that a reversal of external factors is not expected anytime soon and that the protective shield proceedings are needed to oversee changes.

Legal experts from SGP Schneider Geiwitz and BUSE are said to be supporting the management as general representatives with Prof Dr Peter Fissenewert, Oliver Brückner, and Arndt Geiwitz appointed.

In a statement, Geiwitz says: “I see Manroland Sheetfed has a viable core business. However, we will have to implement drastic and far-reaching measures, then the restructuring has a chance of success. This is also confirmed by an independent expert opinion.”

Manroland Sheetfed chief executive officer, Mirko Kern 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.”

In March last year, Manroland’s UK division looked to re-engage customers and the UK market with a roadshow event that invited visitors to see live demonstrations of one of its latest presses at Potts Print in Newcastle.