French textile firm DMC seeks creditor protection
STRASSBORUG, April 29 (Reuters) - Dollfus-Mieg et Cie, a traditional embroidery textiles firm founded in the Alsace region in 1746, said on Tuesday it had applied to a commercial court for creditor protection.
In a statement the firm (DOLP.PA: Quote, Profile, Research) said its problems were caused by the weak dollar and competition from products made in Asia.
The firm said it would go to the commercial court on Wednesday. The court can either decide to try and restructure the debt in a new safeguard procedure tested out by Channel tunnel operator Eurotunnel last year, or to close down the firm.
Ignace Hermann, a labour union representative, said DMC would apply for a payment freeze for parent DMC SA and also the DMC Tissus sportswear subsidiary.
Share trading in DMC was suspended on Thursday.
DMC has already announced a plan to shed 208 jobs out of 1,100.
The group was established in Mulhouse over 250 years ago to make painted fabrics, called toiles Indiennes in French, and still employs 850 people in this region in northeast France.
In February it said 2007 turnover was down 18.9 percent to 145.5 million euros.
In January this year it agreed with its creditors a debt rescheduling for 14 million euros.
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSL2992875220080429?sp=true
2 comments:
good thing I have 2 full sets...might start buying a third!
I may have to go to my LNS HERE and stock up. Stock up on the ones that I don't have many of.
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