MCH does not see stability of the company at risk
The trade show organizer MCH does not believe the company's stability is at risk despite the cancellation or postponement of several trade shows due to the coronavirus crisis. The company has now decided on measures to reduce personnel costs, as the MCH Group announced on Friday evening.
"Despite the negative effects, the stability of the company is guaranteed, we have strong liquidity," MCH CEO Bernd Stadlwieser is quoted as saying in the statement. The current situation also has no influence on the implementation of the newly defined strategic orientation, which will "continue to be driven forward intensively".
Costs for Baselworld postponement within the scope
For Baselworld, which has been postponed until 2021, the costs incurred by the MCH Group and customers are "within reasonable bounds", as the construction work has not yet begun. Solutions are now being worked out together with exhibitors and suppliers, the exhibition organizer writes. At the same time, Baselworld is also working at full speed on the launch of new digital initiatives.
By cancelling Art Basel in Hong Kong at an early stage, the MCH Group has saved costs for itself and its customers, according to the statement. MCH has also registered its claims with the insurance company. The group is leaving open the staging of Art Basel in Basel from June 18 to 21, 2020, which is not affected by the current Federal Council decree. Should the situation require it, an alternative date later in the year will be examined, it says.
Alternative dates are currently being examined for Habitat-Jardin in Lausanne as well as for Smart Suisse, which was planned for March 18-19 in Basel. Hard hit, he said, was Giardina in Zurich, which was already under construction for the event from March 11 to 15, 2020. Here, solutions for costs already incurred would be worked out together with exhibitors.
Overtime reduction and short-time work
The postponement of events and exhibitions is also being felt by the MCH "Live Marketing Solutions" Division, which also includes stand construction. The MCH Group hopes that there will be compensation in the summer and autumn for orders that have now been lost.
In order to reduce personnel costs, MCH has decided, among other things, to reduce overtime and high vacation balances and to temporarily halt the recruitment of new employees. The application for short-time working in particularly hard-hit areas is in progress, the statement continues.
