If you are a regular reader of Venus Adult News this won’t come as a surprise: The German adult entertainment and sex toy giant Beate Uhse filed a petition for insolvency proceedings. The writings for this step were on the wall.
On Friday the 66-year-old company Beate Uhse AG had to file for bankruptcy protection. The group is active all over Europe. Earlier the company did postpone the publication of its annual report and did remove its CFO in June. The new CEO of the company Michael Specht hired a consultancy to thoroughly analyze the financial situation of Beate Uhse. Apparently, that didn’t lead to good news.
Throughout the year Beate Uhse tried to solve its problems. Aside from hiring the new leadership Beate Uhse also sold some of its subsidiaries like the Dutch Scala Playhouse and closed down several of its physical stores. Additionally, there were some layoffs and the legendary catalog’s print edition had been canceled. Beate Uhse postponed the publication of its annual report which had lead to hefty fines being imposed on the already struggling company. Beate Uhse also moved its headquarters. Sales in 2015 were 128 Million Euro, sales for 2016 are expected to be much lower. None of it signs of particular strength.
Yet Beate Uhse could not break free from its problems. The company that is listed on the stock exchange had to file for bankruptcy protection. A representative for the company said: »The CEO of Beate Uhse, Michael Specht, came to this decision in order to achieve the possibility to restructure the group in self-administration.« Business is expected to continue for all subsidiaries as the insolvency proceedings have only been filed for the holding company Beate Uhse AG. Michael Specht said: »We are confident that this will allow us to restructure the group as a whole.«
The move had become necessary as the management did not succeed in reaching an agreement with Beate Uhse’s creditors. The problem was a bond issue of 30 Million with an interest of 7,75%. Payment was due in 2019. As a debt restructuring was no longer possible insolvency became imminent.
The huge problems of Beate Uhse can’t be reduced to an unfavorable bond issue though. Sales figures have been in decline for years. Industry experts think that the company failed to develop a strategy for the digitization in retail while Amazon, Amorelie, and Eis.de managed to gain significant market shares in the booming sex toy market. Additionally, Beate Uhse didn’t find an answer to compensate for the decline in DVD sales. The rise of tube sites like Pornhub and xHamster exerted immense pressure on paid adult content across the board.
According to the company, Beate Uhse still employs 345 employees, that’s down from 470, the last publically known number. The questions looming over the future of Germany’s biggest adult entertainment company will affect them the most.
Venus Adult News