The move was forced by the recent collapse of Franke & Heidecke, which manufactured the camera body for Sinar's Hy6 medium format system.

That system, which was also sold under the Rollei brand and was adapted for Leaf (who sold it as the AFi), now appears to have little future, with no sign of another maker emerging to continue manufacture.

In Jenoptik's second-quarter earnings report, the Germany-based company says that 'as a result of the insolvency of the supplier Franke & Heidecke, plus the significant deterioration in the business potential for high-end medium format cameras, the group has decided to withdraw from this (continued) negative business, and to carry out the associated reorganisation of its locations and portfolios at home and abroad'.

Jenoptik previously owned 49% of Sinar, and in 2007 bought the remaining 51% of the business with high hopes that the new Hy6 system would be able to compete with more established competitors such as Hasselblad and Phase One.

Although it is not yet clear who will provide financing, Jenoptik says 'Sinar will continue to provide full warranty and after sales services for the medium format camera system and market professional analogue and digital specialist camera solutions', confirming that 'the business of Sinar will be continued outside Jenoptik'.

It adds that the existing supply commitments for Sinar's products 'have now been terminated by mutual agreement'.

BJP has learnt that Sinar, which is probably better known for its precision-made large format cameras, is now seeking funds to finance a management buy-out of the business. However, a spokeswoman for Sinar would not answer our requests for interview to confirm this. BJP also understands that Sinar has admitted defeat with the Hy6 and will not attempt to continue on its own.

Earlier this summer, Phase One bought Leaf and seems to have come to a similar decision regards the AFi. In a recent interview with BJP (published 01 July), Phase One's CEO Henrik Hakonsson said that he saw synergies between Leaf and Phase One, but hinted that his interest in Leaf is based on its people and technological know-how, rather than a desire to develop the AFi system.

Jenoptik says it will continue and expand its existing digital imaging business. 'The topic of digital image processing is and will remain one of Jenoptik's core competencies for the areas of medical technology, life sciences and traffic safety technology through to military reconnaissance.'