Dear members!
Since the increasing spread of the corona virus in Europe and the resulting cancellation of many trade fairs and events as well as the ban on larger shows and events in Switzerland and France, we have received many inquiries from members and colleagues.
There are numerous specific questions about cancellation and cancellation regulations, but also many concerned questions about what effects the virus and the consequences it will have on our industry.
Last week we invited our members to a webinar on the first topic, which can be answered relatively specifically with the contractual relationships and legal consequences. This afternoon we will discuss which legal regulations apply here and also try to answer specific questions:
You can find the recording of this in the closed forum.
Much more difficult are the questions on the second set of topics and the look into the future. The situation is far too dynamic. Prudent and well-considered decisions are the order of the day. We can only speculate about the development of the situation in the coming weeks and we would therefore like to refrain from hasty general statements or demands at the moment. What can happen is shown impressively in the statement by the BDKV, which the association published last week:
The reply followed quickly:
Your own membership then also revises the association's statement:
If we experience the first concert cancellations in Germany, and the probability of such scenarios has increased significantly in the last week, the warning from the BDKV may be overtaken by reality, but it will have long since faded away.
We also see a problem in the social networks. The news about the effects of Corona spread much faster there than the virus itself. In this context, we do not see social media as part of the solution, but as part of the problem. We take every demand for aid programs for the industry, every petition that is started there, seriously, but any demands made of politicians will always be answered by asking for specific figures.
Only concrete figures are a solid basis. That's why the colleagues from the VPLT asked their members to submit their loss figures this week. We will also ask our members about this and then make the figures available as well. Always hoping that what we are seeing is not just the tip of the iceberg and there is much more hidden beneath the surface of the water. It is completely clear that determining the losses is also a dynamic process that has to be constantly updated.
When asked for specific instructions, we can currently recommend our members to take care of solid crisis management immediately. Above all, increasing liquidity has priority. Concrete measures are:
– Collection of outstanding debts
– Investment stop
– Payment in advance for current jobs
– Checking the company for savings potential (vehicles, rents, expenses for ongoing operations...)
– Discussions with creditors about deferral of payments
– Close observation of the market, where can sales still be generated?
As a last resort, in the event of a significant drop in sales:
– Waiver of entrepreneurial salary
– Capital increase from private assets
For employer:
– Stop paying overtime, reducing overtime through time off in lieu
– Offers to employees to voluntarily take unpaid leave
– Short-time work
if further measures are required
– Redundancies
– Sale of fixed assets, return of lease contracts
We will continue to keep an eye on the situation and develop concrete measures in the interests of our members. We are also in talks with the other industry associations on this.
#we #together #right now
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