GERMANY: Assyst Bullmer files for bankruptcy

3 April 2009 | News | Source: Assyst/Bulmer Inc.

German CAD/CAM supplier Assyst-Bullmer confirmed to just-style today (3 April) that it has filed for bankruptcy, but stressed it was confident that a buyer would be found for the business.

"There are a number of buyers talking to the parent company at the moment and we fully expect it to be sold on to another company," said David Bell, managing director of Assyst Bullmer Ltd, the firm's UK subsidiary.

"We have a big recurrent revenue stream of service contracts and spare parts sales, plus AutoMarker, our online automatic lay planning service, which is bringing in business every single day. On top of that we've got the machinery business and the software writing business.

"So we expect someone to buy the whole business as a concern going forward."

Under German insolvency law, a bankruptcy filing offers similar protection to the Chapter 11 rules in the US, which allow a company to continue to operate and reorganise while offering protection from its creditors.

As far as Assyst's subsidiaries are concerned - it has units in Italy, the US, UK, China and Hungary, as well as resellers around the world - each is "in a different situation depending on its domestic market," Bell says.

The parent company in Germany has a stake in all the subsidiaries, but this varies with each one. It is also uncertain whether a purchaser of the German arm of the business would also want to buy its shareholding in each subsidiary.

The company was unable to comment on stories of possible redundancies that have been reported in the German media, although it is understood that around 120 people out of 400 employed in Germany lost their jobs at the end of December as part of an attempt to cut costs as the credit crunch began to bite.

Bell notes that despite the recession, UK sales are steady, "although in the long term we do need to have a supply of machines and software updates from Germany." 

Assyst Bullmer supplies a range of computer aided design software and cutting systems to the clothing industry, including tools for 2D and 3D design, pattern cutting, grading, costings, marker making and cut order planning.

 

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