German broadliner Action Europe has gone bankrupt, after failures from its owner, the Polish broadliner Action SA, failed to secure an investor. According to the spokepersons of Action SA, the liquidation of Action Europe is the "most advantageous form of divestment" available after a fruitless six-month search for an investor.
Action Europe's website now displays a message notifying customers that it has ceased trading. According to its website, "the background to the decision for an orderly liquidation is the consolidation of the sole shareholder's business as part of the ongoing restructuring process. Action Europe and its employees would like to thank all its customers and business partners for the many years of trustful cooperation."
Action SA claims that it will be able to absorb most of its liquidated German subsidiary back into its Polish business. "We have transferred the existing Action Europe business to Poland. We will be able to serve our foreign partners with the same products at the same good prices, so the continuity of our cooperation will be maintained", explains Sławomir Harazin, the vice-president of Action's management board in a statement. The liquidation is part of Action's wider restructuring efforts implemented after it declared bankruptcy in August 2016. The distributor claimed it would abandon or downscale low-margin contracts and projects and reduce its "personnel costs" by 20%.
Action entered the German market in 2014 when it acquired shady bankrupt €109m-turnover German broadliner Devil. In 2016, the German subsidiary underwent a restructuration to "optimise" its front-office operations. Without much success as it seems. Action is the second Polish distributor to have ultimately failed on the German market, following its competitor ABC Data whose local subsidiary was closed just two years after its opening…