Dovo/Merkur misfortune

Thoughts and input on anything related to wet shaving or men's grooming.
Post Reply
brothers
Posts: 21513
Joined: Sun Sep 14, 2008 7:18 am
Location: Oklahoma City USA

Dovo/Merkur misfortune

Post by brothers »

Someone may want to investigate a report Dovo - Merker is insolvent.
Gary

SOTD 99%: Monday, Wednesday, and Friday, soaps & creams, synthetic / badger brushes, Colonial General razor, Kai & Schick blades, straight razors any time, Superior 70 aftershave splash + menthol + 444
User avatar
drmoss_ca
Admin
Posts: 10731
Joined: Thu Jul 08, 2004 4:39 pm

Re: Dovo/Merkur misfortune

Post by drmoss_ca »

https://translate.google.ca/translate?h ... d-50144551

Looks like it's for real, but not unexpected that companies currently shutdown and unable to generate income would run into such difficulties.
"Je n'ai pas besoin de cette hypothèse."
Pierre-Simon de Laplace
Gene
Posts: 1508
Joined: Fri Mar 14, 2008 11:58 am
Location: Buda, TX

Re: Dovo/Merkur misfortune

Post by Gene »

This is quite upsetting.

The fallout from all this is going to be loss of life, coupled with the failure of companies and small business people everywhere.

My wife and I are real estate agents here in Austin. Our last closing (read that as income) was in late February. Can't do open houses, very few showings allowed, clients putting things on hold, sheltering in place - it's been tough. We have seen some improvement in the last 5 days personally, but our brokerage has already lost quite a few agents that were not able to weather this storm.

I am concerned that many places in the area won't survive this.
Gene

"It could probably be shown by facts and figures that there is no distinctly American criminal class except Congress."
Mark Twain

"People shouldn't be afraid of their government. Governments should be afraid of their people."
Alan Moore
slackskin
Posts: 361
Joined: Sat Jan 28, 2012 4:27 am
Location: San Francisco Bay Area

Re: Dovo/Merkur misfortune

Post by slackskin »

I'm wondering whether the bankruptcy laws in Germany are similar to the US. In the US, bankruptcy does not always mean the company will cease to exist.

Chapter 11 BK in the US (so named for Chapter 7 in the US bankruptcy code) is technically called "reorganization," the purpose of which is to give the company an umbrella under which to hide while it reorganizes its finances to become a viable entity, again after which it emerges from bankruptcy.

Chapter 7 BK in the US (so named for Chapter 7 in the US bankruptcy code) is technically called "liquidation," which is where the company sells off the assets, pays the creditors to the extent possible, distributes any remaining funds (typically $-0-) to shareholders, and then goes out of existence.

Let's hope it's NOT the equivalent of Chapter 7. :|
Last edited by slackskin on Sun May 10, 2020 10:22 am, edited 1 time in total.
User avatar
John Rose
Posts: 445
Joined: Wed Aug 24, 2016 8:11 pm
Location: New Brunswick, Canada
Contact:

Re: Dovo/Merkur misfortune

Post by John Rose »

The Google translation of that article yields this:
---------------------------------------------------------------------
Solingen safety razors, razors, scissors, pliers and manicure and pedicure sets - Dovo Stahlwaren Bracht is one of the traditional Solingen companies. Now the company had to file for bankruptcy at the competent district court in Wuppertal.

Of

Dr. became the provisional insolvency administrator Marc d’Avoine from ATN d’Avoine Teubler Neu Rechtsanwälte. Security measures were also ordered. Enforcement measures in particular are prohibited or temporarily suspended. Marc d’Avoine has already accompanied the Grossmann steel foundry in Wald through the bankruptcy proceedings.

After "initial skepticism", the Wuppertal lawyer now sees "considerable optimism" to continue running the company with around 40 employees. We are looking for an investor who would like to take over the company or parts of it. "We are currently working intensively on this", d’Avoine told our editorial team on Monday evening.

Dovo Stahwaren Bracht has been producing and selling the third generation of high-quality cutlery, shaving and personal care products since 1906. "The company has an incredibly good brand name," adds the provisional insolvency administrator. Nevertheless, in the past few years the old manufactory had to recognize more and more that tradition had been rejected. This not only affected Dovo specifically, but was "generally a trend in the market," according to Marc d’Avoine, who also added: "It made business difficult."

After the employees last received short-time work allowance until Monday, they are now receiving 100 percent insolvency loss. “The latter can and should be pre-financed. This was also discussed intensively in various discussions and explained to the employees,” says the law firm of the provisional insolvency administrator. The workforce is ready to remain available to the company.
---------------------------------------------------------------------
So there's some hope yet.
The worst I could imagine is that the brand names (possibly the most valuable asset) are acquired by some company that then proceeds to stamp it on cheap outsourced products.
"If this isn't nice, then what is?" - Kurt Vonnegut's Uncle Alex
brothers
Posts: 21513
Joined: Sun Sep 14, 2008 7:18 am
Location: Oklahoma City USA

Re: Dovo/Merkur misfortune

Post by brothers »

slackskin wrote: Wed Apr 22, 2020 9:18 pm I'm wondering whether the bankruptcy laws in Germany are similar to the US. In the US, bankruptcy does not always mean the company will cease to exist.

Chapter 11 BK in the US (so named for Chapter 7 in the US bankruptcy code) is technically called "reorganization," the purpose of which is to give the company an umbrella under which to hide while it reorganizes its finances to become a viable entity, again after which it emerges from bankruptcy.

Chapter 7 BK in the US (so named for Chapter 7 in the US bankruptcy code) is technically called "liquidation," which is where the company sells off the assets, pays the creditors to the extent possible, distributes any remaining funds (typically $-0-) to shareholders, and then goes out of existence.

Let's hope it's the equivalent of Chapter 7. :|
Maybe a typo, but I would hope it's the equivalent of Chapter 11 Reorganization as opposed to 7 cease to exist.
Gary

SOTD 99%: Monday, Wednesday, and Friday, soaps & creams, synthetic / badger brushes, Colonial General razor, Kai & Schick blades, straight razors any time, Superior 70 aftershave splash + menthol + 444
User avatar
Brutus
Posts: 492
Joined: Tue Apr 10, 2007 4:52 pm
Location: Vancouver (Canada), Coimbra (Portugal)

Re: Dovo/Merkur misfortune

Post by Brutus »

brothers wrote: Thu Apr 23, 2020 8:13 am
slackskin wrote: Wed Apr 22, 2020 9:18 pm I'm wondering whether the bankruptcy laws in Germany are similar to the US. In the US, bankruptcy does not always mean the company will cease to exist.

Chapter 11 BK in the US (so named for Chapter 7 in the US bankruptcy code) is technically called "reorganization," the purpose of which is to give the company an umbrella under which to hide while it reorganizes its finances to become a viable entity, again after which it emerges from bankruptcy.

Chapter 7 BK in the US (so named for Chapter 7 in the US bankruptcy code) is technically called "liquidation," which is where the company sells off the assets, pays the creditors to the extent possible, distributes any remaining funds (typically $-0-) to shareholders, and then goes out of existence.

Let's hope it's the equivalent of Chapter 7. :|
Maybe a typo, but I would hope it's the equivalent of Chapter 11 Reorganization as opposed to 7 cease to exist.

Chapter 11 and Chapter 7 refer to US bankruptcy proceedings only and there is no similar differentiation in German (or AFAIK other European) law.
The administrator has already expressed his hopes that he may be able to reorganize and save the company.

Interestingly, Merkur was bought by Dovo several years ago and even though both companies are located (and produce) at the same location, the bankruptcy proceedings seem only to affect Dovo, according to the company’s managing director.

Be that as it may, I own only two vintage Dovos, was never that interested in their newer razors, and there is still Ralf Aust, Wacker and Böker if one likes to shop for a new German straight razor.


B
The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts.

Bertrand Russell
Post Reply