One of the leading manufacturers of wheels BBS filed for bankruptcy because of a sharp drop in demand and a halt in production due to the pandemic.
The effects of the coronavirus pandemic continue to shake the automotive industry: this time the manufacturer of BBS wheels has declared bankruptcy.
BBS Kraftfahrzeugtechnik AG is facing insolvency. “Due to the unexpected disappearance of promised payments, insolvency threatens in the coming months,” reads a statement from the company. The ongoing health crisis has hit sales pretty hard, and BBS isn’t the only OEM and aftermarket manufacturer in trouble.
Under insolvency administrator and lawyer Thomas Oberle, the company aims to continue its “extensive restructuring course” in order to bounce back to profitability. “We have a time of change ahead of us,” reads another statement, and obviously, securing the financial future of BBS is top priority.
Considering that Oberle has also administrated the previous insolvency from 2011, it’s high time for the administrator to prove the naysayers wrong. However, it won’t be an easy job if you take a look at the ridiculously low share price of BBS.
Rest assured, though. The factories will keep churning out wheels during the restructuring process, and with a little bit of luck, NICE Holdings Co. may find a new owner for the cash-strapped wheel manufacturer. At the time of writing, BBS Kraftfahrzeugtechnik AG employs around 1,200 people.