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Touratech AG begins financial reorganization; US operations unchanged

Friday, August 11, 2017   (0 Comments)
Posted by: Wes Fleming
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Motorcycle accessory specialist Touratech AG has filed for insolvency. This was announced by Ingo Schorlemmer, press officer of the law firm Schultze and Braun, in a press release. Dirk Pehl was appointed as temporary insolvency administrator. However, business operations are to be continued unchanged. Touratech is the largest employer in Niedereschach, with about 400 employees.

According to the press release on Friday, the company's employees were informed by the provisional insolvency administrator as well as by the Executive Board about the insolvency and current status at a company meeting. Wages and salaries were paid. Dirk Pehl will use the phase of provisional insolvency to gain an overview of the economic situation of the company and to examine restructuring options.

"Touratech already devised initial principles for a restructuring concept with its consultants before the application for insolvency," says Pehl after an initial survey. "The first thing we need to do is to implement the restructuring that has begun and to develop opportunities to put the company on a healthy financial and economic footing so as to preserve the location and jobs as much as possible," said the insolvency administrator.

The reason for the insolvency is the late implementation of the new building, which Touratech deemed necessary due to increased demand, the press release states. The associated difficulties with logistics and production as well as the considerable production and supply losses led eventually to insolvency.

The new three-building logistics center houses a modern warehouse, picking facility, workshop, administration offices, the Touratech shop and bistro, as well as the sales, marketing and product management offices previously housed in the former Tennishalle. It was put into operation in August 2016 after a six-and-a-half-month construction period, and was inaugurated at the end of October 2016 with a large ceremony, attended by District Administrator Sven Hinterseh and Mayor Martin Ragg.

The company invested more than ten million euros (11.8 million US dollars) in the new building on the Dauchinger Straße with an area of about 20,000 square meters, which was built at an angle to the existing Touratech site in Niedereschach. According to the firm's statement, existing jobs should be secured and new jobs created.

Paul Guillien, CEO of Touratech-USA, released the following statement in a press release:

Touratech-AG (German Operations) has retained consulting firm Schultze & Braun to assist with a financial reorganization of the company. The fast growth in the adventure motorcycle segment and the company's expansion to meet this demand has resulted in the need for a re-organization to ensure a healthy future. Under the advisement of Schultze & Braun, Touratech AG will be using the German bankruptcy rules to re-organize the assets and liabilities of the business to provide a stable foundation that will allow the company to continue serving the parts and accessories segment of adventure touring motorcycle market.

Touratech-USA, the US importer, is an independently owned US company and is in good financial condition and will not be impacted by the restructuring in Germany.

Over the last three decades, Touratech has become the leading brand in adventure motorcycling with a catalog featuring thousands of products which are available in nearly 100 counties. The company is well known for its quality products, innovative ideas and travel inspiration. Motorcycle parts production will continue uninterrupted.

Whether you are preparing for a weekend trip or the motorcycle ride of a lifetime, Touratech will continue to be your dedicated resource for motorcycle accessories, gear and apparel. The company will use the opportunity to focus on the core parts and accessory part of its business while continuing to inspire its customers to explore the world on two-wheels. Touratech-USA will continue it's regular operations and events in the US as it has in the past.

 

Story translated from an article on Suedkurier.de. Touratech-USA's press release added after initial publication.


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