Heinrich von Nathusius, the new owner of large German bicycle manufacturer Mifa since the beginning of this year, is facing fresh problems with the company. From Oct. 1 until the end of 2015, the entrepreneur intends to put 350 of the altogether 550 workers on short-time work. During this period, they will work only 30 percent and will spend 30 percent more time on training.
Von Nathusius told the Mitteldeutsche Zeitung that, following the acquisition, some 50-60,000 bikes were found which still need to be sold, but which are in an unexpectedly bad shape. The sales will have an impact on the company’s financial performance.
For the rump financial year from January through September, Mifa expects to have sold nearly 400,000 bicycles – sales of some €60 million. This is not considered sufficient for a turnaround.
By the start of next year, von Nathusius wants to see production running as normal and expects sales of about €104 million for 2015-16. Despite its current difficulties, Mifa is set to move to a new production plant, scheduled to open in mid-2016. Investment in the new facility is said to be around €17 million.