BenQ Mobile to close after administrator’s fail to find buyer

3 Jan 2007

The German mobile phone business of Taiwan’s BenQ Corp, BenQ Mobile, is to close its doors after insolvency administrators working for the firm failed to find an investor willing to save the struggling division. BenQ Mobile applied for bankruptcy protection from its creditors in September 2006, writes The Associated Press, just a year after the Taiwanese firm bought the unit from Siemens and announced plans to try to turn it around. However, with no white knight bidder emerging by the 31 December deadline, its administrator Martin Prager has little option but to shut down the company’s HQ in Munich and its production facility in western Germany.

BenQ Mobile employed 3,000 people of whom around 400 are understood to have found new jobs, some of them with Siemens. The remaining 2,600 are to continue receiving a significant part of their previous wages for up to a year under a transitional arrangement largely financed by Siemens. Despite the gloomy prognosis, an official for the unit’s works council voiced his hopes that a buyer could still be found for BenQ Mobile, allowing production to resume again.

Germany