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Some update about Progress Watch AG
Read in the edition of the 28th of October 2002 in the newspaper
?Bieler Tagblatt?
The location in Biel will be given up :
Which chances does the Progress Watch AG have? Which goals? Hubert Baumgartner and Felix Mueller give information over the past and future music.
For almost two years Progress Watch AG hasn?t stopped suprising. The conflict between Progress Watch Corp. established in the USA and its subsidiary Progress Watch AG in Biel takes apparently no end. Regularly new leading people appear from nowhere and disappear again in the floods, reproaches are moved back and forth, statements are made and disclaimed shortly after. By the numerous obscure transactions, closing of companies and postponed bankruptcy, everybody, i.e. the remaining employees, the customers and the investors are all disconcerted.
Light in the darkness
Hubert Baumgartner, president of the board, and Felix Mueller, second member of the board and representative of the group of investors of Bianchi, want to bring light in the darkness. Should the sale of the 70 percent of Progress Watch AG to the New Progress Interholding be confirmed by the court and should Progress Watch AG receive a further bankruptcy delay at the end of November, the new crew will have to release the enterprise from the old dump. One of the heaviest burdens from the past, which have to be carried by the company, are the financial problems. The last time Progress Watch AG had to present concrete figures was on the 11th of June 2002 in front of the court. At that time Progress Watch AG had a deficit of 160,000 Swiss Francs; in addition to that the company has debts towards thirds of 5,5 millions Swiss Francs. However in November 2001, the mother company Progress Watch Corp. was ready for a rank resignation of a value of 27 millions Swiss Francs. At the same time, the Bianchi group had shot in a first treat of 6 million Swiss Francs. According to the director of the board, Hubert Baumgartner, Progress Watch AG works again with profit since March 2002. Therefore Baumgartner promised in front of the court that the company will write black numbers again at the end of the year.
Financial situation today
"We can stick to that", stresses Felix Mueller in the discussion with the BT (Bieler Tagblatt, newspaper of the city of Biel) because : "the operational result with the production of the Tourbillons is positive." And the production of Tourbillon movements is presently the most important support of the company. However, he does not want to mention any concrete figures. But they will have delivered 600 Tourbillon movements in 2002; for 2003 a volume of a 1000 to 1100 Tourbillon movements is planned. But it appears evident that the range of the Tourbillon has to be developed further in the future. It is also planed to invest again into the development of the calibers 152 and 154. "We want to re-launch them shortly too long-term ", says Mueller.
Decision of the Locatings
But there are also losses to be reported: the location at the ?Alleestrasse? in Biel ? where the company still has offices - will be given up completely. "We resigned the premises for the end of the year " confirms Hubert Baumgartner. In the future, Progress Watch AG will be lead completely from Tramelan, where the whole production is already stationed today. UF Microtechnique SA in Le Locle, a subsidiary of Progress Watch AG is shut down for the moment. "The machines will be transferred to Tramelan", explains Mueller. In addition to that, the subsidiary Aigat SA will have to search a new location until 2004. Whether the location shifts are final thereby, one cannot say yet, says Mueller. But he stresses: "we exclude a complete move of Progress Watch AG and their subsidiaries from the region." However, it could be possible that the name of Progress Watch AG disappears "we leave it open whether it comes to a change there or not? says Mueller. At least the image of Progress Watch AG did not suffer in such a way at the customers that a name change is urgently necessary : "presently we have a dozen of customers, our order books are full", according to Mueller.
Coming to terms with the past
An amazing situation in fact, confirms Hubert Baumgartner. Because, in the past of Progress Watch many "bizarre procedures" happened, which could not be cleared up until today. "The Corp. never kept account correctly; we never received the requested documents "he says. In addition to that, it was often impossible to reach Peter Gschwind, who constantly promised to work out a reorganization solution for Progress Watch AG with new investors. Nothing new there again : According to Felix Mueller, Peter Gschwind in his statement against the decision of the court of the circle II of Biel Nidau, presented again an investor out from the hat. Mueller: "we would have nothing against it if this investor has assets and is equipped industrially." Nevertheless, this seems to be the case this time, according to Mueller. The Bianchi group had however already tried to find a reorganization solution by the 30th of September, together with the Progress Watch Corp. Obviously an impossible venture. Because Gschwind kept neither his promises nor sticked to agreed dates. For Bianchi this was one of the reasons, why they invested directly into the AG and not into the Corp.. The relationship with Peter Gschwind changed also for Hubert Baumgartner: "I knew Gschwind already longer", he tells. "As he asked me to take over the job of president of the board, I was therefore convinced that I would be able to reorganize the company." But I was also "badly" deceived of Gschwind, grants he and laughs: " In the end, I am someone who believes in the good - although I should be more distrustful as a trained accoutant."