This is the third declaration of bankruptcy for the well-known German bicycle manufacturer since 2007.
We find a lot of well-known names among the manufacturers of alloy wheels, but perhaps none of them sound as loud as BBS. The German company, whose name combines the initials of the founders Heinrich Baumgartner and Klaus Brand with the German city of Schiltach, became famous in the early 1970s for its three-piece wheels for racing cars.
Since then, the star of the company has been rising, which was also confirmed by cooperation with countless car manufacturers, which supplied new cars on BBS wheels. However, in 2007 came the first declaration of bankruptcy, after which the bicycle manufacturer ended up in the hands of Punch International.
Although it reorganized, the situation repeated itself in four years and the BBS declared bankruptcy again. However, the company was able to recover from it, and in 2015, the South Korean company Nice Holdings Co. became the majority owner of the shares.
But there have been other financial difficulties this year, as AutoEvolution has pointed out. The company itself states in a press release that the reason for declaring bankruptcy is the unexpected dropping of the promised payments.
According to information immediately brought by the Motor Illustrated website, the company declared bankruptcy only in Germany, mainly due to the coronavirus crisis, which led to a drop in demand and a temporary cessation of production.
The company should now be operational again, but will be headed by insolvency administrator and lawyer Thomas Oberle, under whose leadership the company should undergo intensive restructuring. Oberle already has experience with this, as he headed the company during the bankruptcy declared in 2011.
During the restructuring, the company will still produce wheels, including new discs for NASCAR racing cars. However, despite the scope of this contract, it is unlikely that this would be sufficient to stabilize the company financially. This raises the question of whether the parent holding company Nice Holdings Co. will not try to find a new owner for the bulletin board.