BBS, the renowned wheel manufacturer from the Black Forest, is facing its fifth insolvency proceeding since 2017. The insolvency administrator has been forced to take drastic measures, including the dismissal of nearly all 240 employees as of October 1st.
A legacy of excellence and recurring financial troubles
Once the producer of wheels for Michael Schumacher’s Formula 1 car, BBS is now on the brink of collapse. Dr. Dirk Pehl, the insolvency administrator for BBS, confirmed to the “Neue Rottweiler Zeitung” that a new insolvency proceeding will be opened on October 1st, accompanied by the dismissal of almost all 240 employees.
Pehl explained that this step is necessary because the insolvency benefit payments will expire on September 30th, and BBS is unable to pay wages and salaries on its own. The reason for this is that the actual business operations had come to a standstill months before the insolvency filing. “At the time of the insolvency application, we therefore had no business operations, no orders, and no money in the account,” Pehl stated.
Trademark dispute and its consequences
One of the contributing factors to BBS’s current situation is a trademark rights dispute. Following the last insolvency, the new owner, Turkish investor group İş Global Teknik İnşaat A.S., acquired the production facilities but not the trademark rights. This prevented BBS from producing new wheels and distributing existing stock for months. The rights were only transferred to the new owner in August.
While the dismissed employees are entitled to wages against BBS’s remaining monetary assets until the end of their notice period, the insolvency administrator says this is insufficient to pay all employees. As a result, employees will initially receive unemployment benefits for three months. For the difference between unemployment benefits and salary, employees have a claim on the insolvency estate, which will be settled at the end of the insolvency proceedings – if sufficient capital is available.
BBS: A storied history and uncertain future
BBS has undergone a total of five insolvency proceedings between 2017 and 2024, including the current one. The company was founded in 1970 and primarily manufactures aluminum wheels for high-end vehicles. The name BBS stands for the surnames of the two founders and the company’s location: Heinrich Baumgartner and Klaus Brand in Schiltach.
As BBS faces yet another financial crisis, the future of this historic wheel manufacturer remains uncertain. The impact of this latest insolvency on the company’s legacy, its remaining assets, and the local economy in the Black Forest region is yet to be fully determined.
