RECARO Automotive GmbH enters self-administration – seat manufacturer leverages judicial restructuring options
Baker Tilly is providing legal advice throughout the process.
Munich, July 30, 2024. Recaro Automotive GmbH, headquartered in Kirchheim unter Teck, has filed for insolvency with the Local Court of Esslingen. The company encountered significant financial difficulties due to extreme price increases in recent crisis years and the loss of a major contract. The effects of legacy products and business operations impacted the development of new product offerings during a regional reduction in vehicle purchase spend. On July 29, 2024, the court approved preliminary self-administration and appointed attorney Holger Blümle from the law firm Schultze & Braun as the preliminary custodian. The international consulting firm Baker Tilly is providing legal advice throughout the process.
Insolvency payments will secure employees' wages and salaries. The employees were informed as of Tuesday morning in a townhall meeting together with the trade union, the works council and local politicians. The company plans to maintain full production during the insolvency proceedings to continue fulfilling all existing orders and new customer inquiries. The shareholders have emphasized the importance of the organization in the region for the group and have pledged their support for the restructuring efforts.
The insolvency proceedings are limited to Recaro Automotive GmbH and do not affect any other group companies. The financially distressed, traditional Swabian company intends to strengthen its position both locally and globally through this process, under judicial supervision and with the support of Baker Tilly.
By working together as a team with our employees, suppliers, and customers through the possibility of an insolvency plan under the German Law we expect to stand on solid ground again in a timely manner.
RECARO Automotive GmbH, an innovative global supplier in the production of high-quality automotive seating based in Kirchheim unter Teck with about 200 employees, is a licensee of RECARO Holding GmbH. To learn more, please visit https://www.recaro-automotive.com/us/recaro
Baker Tilly, with 41,000 employees in 145 countries, provides a comprehensive range of personalized and innovative consulting services. Worldwide, auditors, lawyers, tax advisors, and management consultants work together to create solutions that are precisely tailored to the specific needs of their clients.
Schultze & Braun is an interdisciplinary firm of lawyers and tax advisors in Germany, employing over 500 highly qualified and specialized staff across more than 30 locations in Europe.
Press Contact Baker Tilly
Frank Schröder
Marketing & Communications
Baker Tilly, Cecilienalle 6-7, 40474 Düsseldorf
M: recaro-automotive@bakertilly.de
