Company founder and managing director Lars Wolf explained to L&SI that a mis-allocation of assets by an external agency had given a false impression of the company's position at the end of 2008; when the error came to light, a rescue package was agreed with the company's bank. However, two consecutive months of poor trading in January and February put an end to Wolf's hopes of trading through the crisis, and he took the decision to put the company into administration.
Speaking to L&SI at the ProLight&Sound exhibition in Frankfurt, where some of the costs of the G LEC stand were met by friends and supporters, Wolf said the German authorities are satisfied that he had acted properly throughout the process and that there was no intention to mislead on his part.
L&SI understands that the business is continuing to trade as normal, taking orders and providing equipment. Wolf told L&SI that there are a number of companies interested in acquiring aspects of the G LEC operation and he was extremely hopeful that there would be a future for the company's products and technologies. More news is expected in the coming weeks.
(Lee Baldock)
