Moulinex court approves rescue bid

Moulinex became famous for its food mixers

The French court handling the affairs of bankrupt home appliance maker Moulinex-Brandt has approved a rescue takeover bid from SEB.

But SEB's offer still means job losses for the vast majority of Moulinex's 21,500 staff worldwide.

The rescue package will salvage only 4,250 jobs, mostly at the 8,800-strong small appliances division making Moulinex's brand-name foodmixers, for which it became famous, as well coffee makers and electric kettles.

Neither of the two potential rescuers for Moulinex, SEB and US-based Leucadia, wished to buy the operations making vacuum cleaners and microwave ovens.

"We are thrilled that the commercial court ruled in our favour," said SEB chairman Thierry de La Tour d'Artaise.

Redundancy worries

Moulinex filed for bankruptcy last month after attempts to put together a refinancing plan failed.

The firm had already slashed 4,000 jobs this year in an effort to make itself profitable.

France's prime minister, Lionel Jospin, has said the government would "make the (Moulinex) workers' situation a priority," working closely with the court to implement any takeover plan.

About 11,000 of Moulinex's workforce are based in France.

Speaking after the court's ruling, the SEB chairman said the rescue package will save 3,650 French jobs - 1,850 at Moulinex and 600 at supplier CGME. A further 1,800 staff at Moulinex plants abroad will be retained.

Huge debts

The court handling Moulinex's bankruptcy has twice postponed the bid deadline to enable SEB to put together a rescue package.

The SEB bid attracted stronger financial backing but was less popular with the French trade unions because it involved more job losses, correspondents say.

Moulinex has only made a profit twice in the past 10 years and its debt levels are estimated to be about 766m euros (£472m).

Moulinex merged with the German company Brandt last year.

Moulinex became a household name through its kitchen blenders and appliances - the first of which it launched in 1932.

It also enjoyed great success in the US when it began making microwave ovens in the 1980s.

But the company was hit hard by the emerging market crises in Asia and Russia, which caused sales to plummet and competitors in Asia to cut prices aggressively.