Supplier Veritas files for bankruptcy

Veritas employees

The supplier had to file for bankruptcy.

(Photo: Veritas)

Frankfurt, Gelnhausen The auto parts supplier Veritas has filed for bankruptcy in the corona crisis. The Hessian company has submitted an application to the Hanau District Court, a company spokeswoman said on Thursday.

Around 2200 employees at the German locations are affected by the bankruptcy. The “Wirtschaftswoche” had previously reported on this.

The bankruptcy application had emerged after the search for an investor had failed, as Veritas, based in Gelnhausen, had already announced on Wednesday. “Most recently, the effects of the corona pandemic and the associated decline in sales have had a massive impact on the investor process.”

The insolvency proceedings “give the group of companies the opportunity to continue on the path of sustainable restructuring and realignment and to start a new investor process as a further restructuring option”.

Veritas manufactures hoses, pipes, air circulation systems and seals. According to the company, the company employs around 4,400 people worldwide, half of whom are in Germany.

The company’s roots go back to 1849, making Veritas AG the oldest rubber processing company in Germany. According to the “Wirtschaftswoche”, the restructuring expert Jan Markus Plathner was appointed by the Brinkmann und Partner law firm as the provisional insolvency administrator.

More: Continental postpones spin-off from Vitesco drive division.

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