The German sports seat manufacturer Recaro has filed for bankruptcy, according to reports from Autocar. This development comes four years after the company was taken over by private investors.
Recaro, known for supplying car seats to prominent automotive brands such as BMW, Ford, Volkswagen and Renault, has been approved for self-administration by the district court in Esslingen, near its headquarters in the Stuttgart region of Baden-Württemberg in southern Germany. This allows the company to continue operating under current management during the bankruptcy proceedings. Local media reports indicate that employees were unaware of the bankruptcy filing prior to the news breaking.
The filing comes four years after Detroit-based private investment firm Raven Acquisitions purchased the company. The German metalworkers’ trade union IG Metall has expressed uncertainty about the implications for the 215 employees at Recaro’s factory in southern Germany who are union members.
In addition to automotive seats, Recaro produces aircraft seats, gaming chairs and child car seats through separate companies and licensing deals. These aspects of the business are reportedly unaffected by the bankruptcy.
Recaro has not yet released an official statement regarding the bankruptcy.
