German battery manufacturer Varta has submitted four applications to initiate bankruptcy proceedings, as confirmed by a spokesperson for the Stuttgart District Court.
The documents are currently under review by the assigned judge, according to reports from Reuters and DPA at the end of July.
Earlier, Reuters had reported that the Ellwangen-based company would seek bankruptcy protection after its primary shareholders, sports car manufacturer Porsche and Austrian entrepreneur Michael Toener, each holding a 50 percent stake, declined to provide further financial support.
German media suggests the company may be divided into segments. Its major creditors, including Deutsche Bank and several hedge funds, show interest in the profitable household battery sector, while Michael Toener is focused on the microbattery segment, such as button batteries for hearing aids.
Varta reportedly employs approximately 3,260 staff, predominantly located at the Ellwangen headquarters.
The most recent financial results from 2024 reveal revenues around 793 million euros with a net loss of 64.5 million euros. The company manufactures microbatteries for hearing aids and energy storage systems, in addition to household batteries.
In 2024, Varta underwent restructuring under the German Act on the Stabilization and Restructuring of Enterprises to stave off bankruptcy. During this process, previous shareholders forfeited their stakes while creditors relinquished part of their claims. Earlier this year in April, the company announced successful completion of restructuring, resuming its path to stabilization.
Nonetheless, the economic situation has worsened. The Bavarian plant in Nördlingen, employing about 350 workers, is set to close in the fall due to Apple’s termination of orders, Varta’s largest client. Until November, the plant will continue manufacturing button batteries for Apple’s wireless headphones, after which production is likely to relocate to Asia.
Illustrative photo: pexels-moh-adbelghaffar-6015268
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