BANG & OLUFSEN

B&O is everything that a Danish company is supposed to represent; first-class design, top-quality production, very high prices. Way beyond my league.

Unfortunately, it is also in deep trouble. Sales are plummeting in Europe; and although rich Chinese and other Asians are beginning to buy expensive televisions and stereos, Europeans are cutting back even faster. 125 stores are being closed in Europe, which will reduce costs; but B&O still expects to lose Dkr.150-200 million at the operating level in this financial year.

The problem is that B&O also represents other things that Denmark has, notably sky-high labour and production costs. Despite restructuring, I'm not convinced the company will survive in its present form.

Walter Blotscher