BOCHOLT (dpa-AFX) - Communications technology provider Gigaset says it is insolvent. According to company statements on Tuesday, the management board of Gigaset AG has decided to file an application for the opening of regular insolvency proceedings for Gigaset AG and an application for the opening of insolvency proceedings in self-administration for Gigaset Communications GmbH at the Münster District Court. The development, production and sales activities for DECT cordless phones will continue unchanged, the Bocholt-based company further announced. The aim is the sustainable restructuring of the economic basis.

The background to the insolvency application is essentially an unexpected and significant decline in sales in the second half of 2023 and a business performance significantly below plan. In addition, there is a persistently weak demand for Gigaset products, which is worsening, as well as purchasing restraint in Germany and Europe. The overriding goal of the insolvency proceedings in self-administration for Gigaset Communications GmbH is the sustainable restructuring of business operations.

Gigaset says it is Europe's market leader for DECT cordless phones with around 850 employees. The business activities of the company, which has a 175-year history, also include Android-based smartphones, cloud-based smart home offerings and business telephony solutions./sl/DP/jha