BenQ Mobile Files for German Bankruptcy

Taiwan's BenQ has announced that it will be seeking bankruptcy protection for its BenQ Mobile subsidiary in Germany. Some 3,000 jobs are at risk. BenQ announced that there will be no further payments to BenQ Mobile. Both revenue and margin development will fall far short of expectations in the important Christmas quarter.

Due to the discontinuation of further financial support from the parent company, BenQ, and the resulting lack of liquidity and implicated disruption to business, BenQ Mobile in Germany will file for insolvency at the local court in Munich within the next few days.

"Despite the progress achieved in reducing cost and expenses, widening losses have made this very painful decision unavoidable," BenQ Chairman, K.Y. Lee said in a statement.

The BenQ Mobile Headquarter in Munich , as well as the sites Kamp-Lintfort and Bocholt in North-Rhine-Westphalia, with a total of approx 3000 employees, are affected. (1,400 in Munich and 1,600 in NRW).

BenQ Mobile Management, headquartered in Munich, Germany has taken immediate action in order to secure ongoing business operation. Possible consequences for the other BenQ Mobile sites and regional companies still need to be evaluated.

BenQ plans to continue its global mobile business under the brand of BenQ-Siemens, and continue to utilise its associated research and development facilities, as well as production facilities, in Asia ."

Posted to the site on 29th September 2006