Sewing machine maker Pfaff filed for bankruptcy Thursday after a failed effort to save a company that CEO Josef Kleebinder has said is euro40 million (US$56 million) in debt.
A last-ditch effort in recent months to recover from more than euro20 million (US$27 million) in writedowns failed, the company said in a statement.
"The difficult market environment, especially in Asia, high capital demands and the recapitalization situation led interested investors to take the position that they did," the statement said.
Pfaff manufactures personal and industrial sewing machines as well as heat-sealing equipment at plants in Kaiserslautern, southwest of Frankfurt, and Taicang, China.
The statement said the company would move quickly to sell its factory in China.
The manufacturer has 400 employees in Kaiserslautern and 800 globally.
Michael Pfaff founded the storied company in Kaiserslautern in 1862. By 1954 the company had made 5 million sewing machines.
More recently the company has struggled, beginning with a major restructuring in the 1990s.
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On the Net: http://pfaff-industrial.com/
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