Spector seeks buyer for Photo Hall

According to a press release, Photo Hall has been affected by the impact of the crisis and the decline in the consumer elelctronics market of consumer electronics, the pressure on prices and increased competition for some time. Since the beginning of 2011, various measures have been implemented to improve the situation, including the closure of several shops in 2011 and 2012 and a change in management. While the parent company, Spector Photo Group NV, has increased its equity in Photo Hall the number of staff and the inventories has been drastically reduced. The result of these measures turned out to be insufficient in order to find a short term agreement with the lenders. The Board of Directors of Photo Hall Multimedia SA therefore decided to seek a buyer for its activities under the protection of the Belgian Law on the continuity of companies – Art. 59 to Art. 70 – "Judicial reorganization through transfer under judicial authority."

Photo Hall said make all efforts to ensure the continuity of the company puring the process, preserve the jobs, maintain the service to its customers and safeguard the relationship with its commercial partners. With this decision of the Board of Directors of Photo Hall Multimedia SA, Spector Photo Group NV will record the Retail Group as of July 1, 2012, as assets held for sale in the consolidated balance sheet. On an annual basis, Spector’s Retail Group recorded revenues of Euro 141.33 million in 2011, with a negative EBITDA of Euro 1.23 million. As of end of 2011, the net financial debt of the Retail Group amounted to Euro 29.59 million. For the entire group, the net financial debt at the end of 2011 amounted to Euro 32.13 million.

According to Spector, the final deconsolidation will have no effect on the consolidated equity of theGroup under IFRS. There were absolutely no financial obligations of Spector Photo Group NV towards the creditors of its subsidiary Photo Hall Multimedia SA, the company said.