TV Loonland to cut half of jobs
EmptyCOLOGNE, Germany -- Struggling German kidvidder TV Loonland has announced plans to slash jobs at its Munich headquarters, firing more than half of its 53 employees.
Loonland shares, which have been languishing in penny stock territory for about a year, jumped 12% late Tuesday to 0.28 euro ($0.42) after the company reported the cutbacks.
Loonland is in the midst of a top-to-bottom restructuring as it tries to stay afloat. Last year, the group signed a debt-for-equity swap with its creditors, handing over up to 10% in Loonland in exchange for writing off the bulk of the company's 20 million euros ($30 million) debt (HR 8/17/07).
As part of its restructuring, Loonland is looking to sell off its U.K. distribution arm Metrodome.
The German group, which produces and market such kids TV brands as "Little Princess" and "Pettersson and Findus" booked a pre-tax (EBIT) loss of 1.9 million euros ($2.8 million) on revenue of 3.2 million euros ($4.7 million) in third-quarter 2007, the last period for which figures are available.