The instrument manufacturer Schreiber & Keilwerth Musikinstrumente, makers of the York brand of brass instruments has gone into administration in Germany.

Insolvent

Company Director Dr. Armin Eckert registered the company as insolvent on 12th of March at the Regional Court in Darmstadt. As a result, administrator Tobias Hoefer from the Mannheim Chamber Hack Hoefer has taken over the Company.

Eckert and Hoefer made the following statement: "Production and service delivery will continue. After initial analysis we see good prospects for stable continuity and have already started to look for new investors."

Financial crisis

They cited the impact of the international financial crisis, which had specifically narrowed opportunities to bring in credit funds as one of the main reasons the company has gone into administration.

Dr. Armin Eckert explained: "The credit supply to our company was via a bank who through the financial crisis can be described as a ‘bad bank’. This caused us many problems over the past few months. The characteristics of a bad bank include that the bank seeks to minimize its own risks."

Production and service delivery will continue. After initial analysis we see good prospects for stable continuity and have already started to look for new investorsCompany Directors

Reduce cash supply

He added: "As a consequence, over recent months the bank sought to reduce our cash supply and as a result no sensible working environment could exist within our company. The seasonal weak months of January and February coupled with limited cash supply led the Directors to place Schreiber and Keilwerth into administration."

Upbeat

The Court appointed Administrator Thomas Hoefer is now at the company in Nauheim, and is initially stabilizing the business to achieve solutions for the future. Hoefer was upbeat in his initial analysis that a long term future for the traditional instrument maker can be secured and that as many of the 300 jobs can be saved.

Frankfurt

The company's new instrument range, including the new York 'Prescience' trombone will be shown at the important Frankfurt Trade Fair.

Hoefer added: "I see a good chance that after successful restructuring the company will be well placed for the future. The order book is full so that we can produce and sell Schreiber & Keilwerth instruments over the coming months. As far as customers are concerned, there will be few in the way of changes. Every order can be entered and counts towards saving the company."

Continue

Dr. Armin Eckert is also certain the company will continue: "We have a modern production plant, strong brand and motivated teams that believe in the company. At this high level, the German Insolvency Law supports complete restructuring to prevent any crisis and enables a new start."