Insolvency drama in Schiltach: BBS rim manufacturer fights for survival

Insolvency drama in Schiltach: BBS rim manufacturer fights for survival

The insolvency of a renowned auto supplier raises questions about the stability of the entire industry and its effects on the local community.

The consequences of bankruptcy for the communities

in Schiltach, where the rim manufacturer BBS is based, the economic losses of the latest bankruptcy can already be felt. Around 270 employees who are employed in the two works in Schiltach and Herbolzheim are concerned about their future. The repeated bankruptcy of the company, which is in the company's history for the fifth time, not only ensures individual fears, but also affects the economic climate of the region, which depends heavily on the automotive industry.

Background of the bankruptcy of BBS

BBS, known for the production of rims for high-priced vehicles and with a story that goes back to 1970, was recently confronted with massive challenges. High energy costs and a decline in sales have pushed the company to the brink of ruin. The production stop in many areas has already affected the employees who have had to do without any significant work for months. This situation was tightened by outstanding wage payments, so that many employees had to wait for their salary in May and June.

Investors and the future of BBS

Only last year did the ISH Group act as an investor and promised to secure jobs and invest in the company. This promise, coupled with the hope of improving the market situation, resulted in a deceptive picture. Dr. Dirk Pehl was used as an insolvency administrator to regulate the processes around the bankruptcy. Stefan Prutscher from IG Metall comments on the lack of communication on the part of the management and sees the future of the company uncertain.

Cross-sector insolvency wave

The bankruptcy of BBS is part of an alarming development in the German economy. According to an analysis by the Falkensteg management consultancy, large insolvencies rose by 41 percent in the first half of 2024 compared to the previous year. This development leads to increasing uncertainty among potential investors who are hesitating due to uncertain market conditions to invest in insolvent companies. Industry expert Jonas Eckhardt warns that many companies will suffer from international competitive conditions without comprehensive adjustments.

final view: the way forward

The repeated bankruptcy of BBS is not only a setback for employees and their families, but also highlights the challenges with which the entire automotive supply industry is confronted. It remains to be seen whether new strategies and adjustments can help to avoid such crises in the future. Time will show whether BBS has the opportunity to recover and what effects this will have on the region.