It was one of Germany's largest companies: It has entered bankruptcy proceedings

The world-renowned battery manufacturer Varta has applied to the Stuttgart Local Court due to long-standing financial difficulties. The statement reported that not only the parent company but also Varta AG, Varta Microbattery GmbH, Varta Micro Production GmbH, and Varta Storage GmbH have been included in the bankruptcy proceedings.

Varta officials stated that the company's operations will not cease entirely and that efforts for restructuring and debt settlement will continue under temporary self-administration. During this process, the company will continue its operations with its current management, and salary payments will continue to be made.

PROFITABLE HOME BATTERY UNIT WILL NOT BE PART OF THE PROCESS

It is noteworthy that in the bankruptcy filing, Varta's profitable Consumer Batteries unit, which specializes in household batteries and consumer products, has been kept separate. It was stated that this unit operates independently from the company's other divisions both financially and operationally.

According to reports in the press, it has been suggested that parties including Deutsche Bank and certain investment groups are considering acquiring the Consumer Batteries division. It is also said that major shareholder Michael Tojner is interested in micro-battery production. These developments are said to have increased expectations that Varta could be split into different companies in the future.

APPLE HALTING DELIVERIES EXACERBATED THE CRISIS

Varta cited the global economic downturn, declining demand, exchange rate fluctuations, and the loss of one of its largest customers as reasons behind the bankruptcy. This customer was identified as Apple.

Apple's decision to source the CoinPower rechargeable batteries used in its AirPods products from China instead left Varta facing a significant loss in production. In May, the company had announced a decision to halt production at its Nördlingen factory and lay off approximately 350 employees.

THE FUTURE DEPENDS ON THE COURT'S DECISION

Founded by Adolph Müller in 1887, Varta employs 3,260 people with a wide product range spanning from hearing aid batteries to energy storage solutions and automotive batteries. Varta's future will depend on the court's response to the temporary self-administration request and the progress of potential asset sales.

Experts emphasize that the process the company is going through is of great importance not only for Varta but also for the European battery sector as a whole.

News Source: 12punto