Franke & Heidecke still manufacturing

[rolleiclubleader]

News article taken from Britisch Journal of Photography

Title: Leaf and Sinar: business as usual
Date: 18 March 2009

News that Franke & Heidecke , one of the leading makers of medium format cameras had gone into insolvency threw the market into a brief panic last week, with dealers and their customers left speculating on the future of an innovative 6x6 system sold by Leaf and Sinar. Olivier Laurent reports on how the companies are responding



Leaf and Sinar are rushing to assure customers that they are not immediately affected by Franke & Heidecke's announcement, revealed in last week's BJP, that it has gone into administration.

Franke & Heidecke owns and develops new products for the legendary Rolleiflex twin-lens camera system, but it also produces a 6x6 format camera body for both Leaf and Sinar, named the AFi and the Hy6 respectively. Now that the German maker has gone into insolvency, saying it cannot pay its bills, questions have been raised about Leaf and Sinar's cameras.

Answers came swiftly after both companies rushed to assure customers that production of the cameras hasn't stopped. Talking to BJP, a spokeswoman for Sinar, which is owned by Jenoptik, said that it is closely monitoring the situation, but for the time being is still fulfilling orders for the Hy6. 'We are still receiving cameras,' she said. 'Production has not shut down and we will be looking at what is going on and what alternatives there are (in case the firm does go under).'

Leaf has released a statement to reassure customers that its camera system is still, and will continue to be, available. 'Leaf management is in constant communication and working closely with the management of Jenoptik and Franke & Heidecke. They are updating us frequently as the story unfolds,' the statement says. 'Regardless of any rumours in the industry, the Franke & Heidecke manufacturing plant is operating normally and will continue to operate while Franke & Heidecke works with their creditors to reach agreement on the best way forward.

'While this process advances, production of Leaf AFi parts and components continues. To further ensure that Franke & Heidecke continues operating efficiently, an interim administrator has been appointed to evaluate the Franke & Heidecke business. What this means is that we will continue delivering Leaf AFi-II camera systems, lenses and accessories.'

Leaf adds that, in parallel to the actions being taken by Franke & Heidecke, it 'is investigating all possible opportunities to ensure that Leaf can achieve its goals. This effort includes urgent work with Jenoptik, Franke & Heidecke, our sales managers and dealers worldwide'.



Trouble ahead The financial troubles at Franke & Heidecke come six months after the firm partnered with Hans R Schmid Beteiligungs to inject new finance to support an increase in its production of camera systems and lenses. However, by January this year the company appeared to be running into trouble after it announced that its chief executive officer would leave the company following disagreements with the new partner, who had become the majority shareholder as part of the investment deal.

'In view of different views regarding past and future policies and cooperation with the new partner Hans R Schmid, Mr Bodo Fischer offered his resignation from the management of Franke & Heidecke, an offer that was accepted by the company,' the firm said in a statement in January.

Now, in a new statement, the company says it is being forced into administration. And, if the statement is to be taken at face value, Schmid is blameless: 'For majority shareholder Hans R Schmid, a devoted supporter of the company's products, who had described his commitment as a matter of personal importance, there was no alternative to filing for insolvency any more. Although it had already been obvious at the time of the take-over that a successful restructuring would cost substantial effort, Schmid accepted the responsibility and acted determinedly. Additional specialists were employed, weak points in the company were examined and millions were invested, et al, in production and quality management. Due to these measures quick progress could be made, however, the massive failures of the past could not be resolved in the required time.'

The second half of the statement is more ambiguous, insinuating that there were hidden debts: 'When recent financial and other old liabilities turned up, which had not been known to the new shareholder at the time of the take-over, it became evident that a financial reorganisation would not be possible even by investing further millions.'

It adds that 'negotiations with important business partners, banks and the attempt to obtain public funds failed', and ends with the suggestion that Schmid invested at least EUR10 million into the business: 'In spite of considerable risk the new shareholder invested repeatedly until the very end and has preserved the company and the hope to maintain 131 jobs. Now the insolvency could not be avoided any longer. In total Schmid invested millions in the two-figure range.'

Franke & Heidecke started producing the 6x6 medium format camera in May 2007 under the impulsion of Jenoptik, Leaf and Sinar. The 'open' digital platform initiative came after Hasselblad announced its H3D camera would no longer be made compatible with competing digital backs (BJP, 18 October 2006), citing a lack of co-operative investment from other makers.

The development of the camera was, at first, largely financed by Jenoptik, which hoped to recuperate the costs by 'franchising' the camera to Leaf, and by distributing it through its subsiduary company, Sinar.

Leaf remains upbeat about the German firm's future, saying: 'F&H investors have recently made a lot of progress in modernising their production facilities and processes,' says Ziv Argov, director of sales and marketing. 'We have recently seen great improvements made in a very short time. These improvements add to the real value of F&H and contribute to the likelihood of creating a solution that will support the factory's future.'

He added: 'As far as other Leaf products are concerned, keep in mind that Leaf digital backs are manufactured and assembled by Leaf with components from various vendors. These products, comprising the core technology of Leaf, are not in any way affected by this announcement.'

Source:

© Incisive Media Ltd. 2009
Incisive Media Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, is a company registered in the United Kingdom with company registration number 04038503

About insolvency in German law: A company that is not capable of paying its bills anymore has become insolvent. This does not mean the company has to close down its doors at that moment. In a court will be decided if and how the company will continue. In the case of Franke & Heidecke that still can mean a great future, given the state of the art technology they possess, the highly motivated staff and the solid portfolio of ongoing camera orders.
When hope is lost ... all is lost .. let us send them a lot of positive energy and perhaps order a new camera !!

[rolleiclubleader]

Today 30.April.2009 I had contact with Dietmar Kanzer , the PR manager of F&H :

He could confirm to me that the Franke & Heidecke production continues as before. Just some staff are working reduced hours and the management is under responsibility of an administrator who will head F&H as per 1.May.2009.

[sienkin]

[rolleiclubleader]

[edwinb]

[aypeyret]

I cannot afford buying all the AF lenses for my 6008, but definitely do not want to lose the opportunity of having the full set if the production is not taken over...

Would anyone know a gross estimate of how many AF-lenses the stores/F&H may have in stock, and the average sales per year, so we can compute a probable number of years before stores run out of the AF lenses ?

[batavia]

Hi , I have tried to get answers from the remaining F&H staff regarding this and other issues. So far hardly any answers. I have as per today contacted a Japanese wholesaler with pretty good contacts re F&H . As soon I know more I will tell...
jaap

[edwinb]

[aypeyret]

[rolleiclubleader]

[rolleiclubleader]

[aypeyret]

[Jan_Keyling]

[rolleiclubleader]

[sienkin]

[rolleiclubleader]

[pointblank]

[rolleiclubleader]

Actually I had a Rolleiflex 6008 in repair with them since dec./2006 . Since I live in Australia but have family in the Netherlands I told them to keep the camera until my next visit, assuming it would be in 2007 and I had no urgent need for the camera. But that visit never effectuated, time passed and I forgot it . Suddenly realized a few months ago that if not claimed the camera it would be lost forever. I emailed the F&H service department , received a swift reply : faithfully they had as per my instructions the camera placed in a secure cabinet or so , it took no time or trouble all to send me the repaired camera. So I to fully admit : sections of F&H worked like a fine oiled machine . But unfortunately management had other priorities to cope with which as now has become clear means that F&H is in its final days.
There are as I write still TLR cameras being completed. Rolleiclub has contact with a European supplier who can deliver orders at demand. If any of you is interested please let me know what you are after and I will see what can be done. I have negotiated competitive pricing for some equipment.

[pointblank]

Still highly interested in the Rollei FW, but obviously for 'a competitive price'. Ebay prices are highly overrated and not realistic.

[rolleiclubleader]

We are proud to announce that Rolleiclub has established a secure contact to Franke & Heidecke to sell Rolleiflex TLR cameras direct to our members for special prices:
Rolleiflex FX : € 3575.00
Rolleiflex FW : € 3875.00
Rolleiflex FT : € 4975.00

All prices exclusive Postage from Europe by Courier. European residents in the European Union must add a tax (VAT / GST / BTM / MWsT ... etc.) Extra of 20%

Anyone interested should send me a purchase order with all personal and address details. After which I will check availability. I will then send a confirmation of reservation of the camera together with an invoice. Payment by direct bank transfer only. The camera will remain reserved for 10 days until payment has been received. If no payment has been received after that period the reservation will be cancelled.

All cameras come with full Franke & Heidecke factory warranty. Besides of that Rolleiclub has secured the services of a independent Rollei Accredited Service center.

For enquiries please contact me direct via the forum or at : webmaster2 [ at ] rolleiclub.com
Regards:
Jaap Roskam

[edwinb]

[rolleiclubleader]

[edwinb]

[rolleiclubleader]

[rolleiclubleader]