By Sarah Falson

SYDNEY: Doro Australia Pty Ltd today issued a statement today to quiet concerns that the business is closing down in the week before Christmas, as suggested by a press release distributed by their overseas parent company earlier in the week.

“Doro Australia Pty Ltd has not closed down and will continue to trade normally,” today’s statement said.

The original press release, titled ‘Doro decides to restructure’, was sent by Doro Australia’s Swedish owner, Doro AB, to retailers in Australia on Monday. It announced outcomes of a Doro AB board meeting, including plans to sell-off its Australia and Finland subsidiaries and replace them with “various distribution solutions".

“Doro’s board decided to… sell off loss-making parts of the company thus creating a long-term competitive company concentrating solely on consumer electronics. Doro will examine the possibility of distributing and selling its products in Australia through agents/partners,” the press release stated.

Doro Australia today confirmed that its business model might yet be restructured.

“A number of different solutions are being considered as to the future structure of the company – these might include the sale of the company to a suitable organisation or working with a distribution partner," today’s statement said.

“The objective of the re-structure is to create a dynamic, totally Australian/New Zealand focused organisation, that can meet the demands of this important market, both now, and in the future.

“It is hoped that these actions will ensure the very highest levels of supply, customer satisfaction, service and support,” today’s statement said.

Doro Australia also confirmed that it has experienced some losses, but doesn’t comment on the SEK 100 million ($A18.5 million) figure floated by Doro AB as the total loss incurred by the company globally in 2006 (before the $A4.6 million that Doro AB’s creditor, Nordea – a financial services group – plans to hand over).

“It is true that some losses have been incurred in Australia however the majority of the losses mentioned in the press release are attributable to the Global downturn in the Dect Marketplace,” said Doro Australia today.

Doro AB’s press release said the company would merge its ‘IP communication and telephony’ business unit into its consumer electronics category, called ‘Home’. Current.com.au believes this could result in supply losses for Doro Australia, which currently enjoys a strong presence in the local IP communication and telephony market.

“Doro’s five Business Units will become four by amalgamating Telephony and IP Communication into Business Unit Home with IP telephony, fixed telephony and consumer electronics accessories."

In addition to the ‘Home’ business unit, Doro AB also owns Luba Sports which includes sports electronics products, ProSound which distributes high-end sound equipment, and Care Electronics which contains specially-designed lifestyle electronics products for the elderly.

Doro Australia managing director, Matt Segafredo, resigned last month and has yet to be replaced. While he will continue working at the company until January, Current.com.au was unable to secure confirmation that Segafredo still performs an active role there.

“Doro Australia Pty Ltd would like to re-assure all of its valuable customers that it is very much ‘business as usual’ and would like to thank you all for your continued support and commitment,” the statement today said.