What's new
DPR Forum

Welcome to the Friendly Aisles!
DPRF is a spin-off of dpreview. We are a photography forum with people from all over the world freely sharing their knowledge and love of photography. Everybody is welcome, from beginners to the experienced professional. From smartphone to Medium Format.

DPRF is a community for everybody, every brand and every sensor format. Digital and film.
Enjoy this modern, easy to use software. Look also at our Reviews & Gallery!

Leica in trouble

dirk

dirk

DPRF-Founder
Administrator
FYI

Leica is in financial trouble as many of you know since last week. Now the banks give Leica a tough call:

published today on the Leica Homepage:

Following the ad hoc announcement of Leica Camera AG, Solms, of
February 17, 2005, stating that the Company expects a loss of half of
its registered share capital in March 2005, the banks have partially
terminated their credit lines. The remaining lines still cover the
current liquidity requirements. The Company’s Board of Management has
entered into negotiations with the banks on a solution that will carry
the Company until the time of its Extraordinary General Meeting on May
31, 2005, at which capital measures are to be proposed to the
shareholders.
 
That's not the first time Leica is in financial trouble, but so far they have always managed to pull themselves out of it by the bootstraps. Considering the enormous brand recognition and the fact that there are tens of thousands of their cameras and lenses still in use - I would expect that in the worst case scenario Leica Camera will be acquired by some groups of investors or bought-out by employees. Technically, what may happen is that Leica will be split by the groups and sold that way. E.g. Leica medial equipment will go to one group of investors (or company), Leica Sport Optics will go to another and Leica Camera to the third.

I actually think that their Sport Optics division is a losing enterprise. Who would pay nearly $1000 for Leica binoculars or spotting scope when they face competitors like Leupold (most popular brand in States when it comes to riflescopes and spotting scopes which produce a better suited product for half the price) and when they also compete against Zeiss, Steiner, Burris, Bushnell, Weaver, Pentax, Nikon, Swarovski at the same time. Speaking of Steiner, I would suspect they have a pretty big part of binoculars market.

Anyway, let's wait and see. I don't think Leica Camera is going to disappear soon. At least not yet.
 
You must log in or register to reply here.
Back
Top