German battery manufacturer Varta has filed for self-administered insolvency with the Stuttgart District Court in Germany after citing a structural financing gap.
The filing covers the parent company Varta AG and all subsidiaries except Varta Consumer Batteries, which manufactures household batteries and power banks.
Varta Storage, which bundles the company’s solar storage and energy management system business, is also included in the proceedings. The company manufactures its storage systems in Nördlingen, near Augsburg, Germany.
Varta attributed the filing to significantly deteriorating market conditions, weaker demand, adverse currency effects, and the decision by a key customer to end its business relationship. The customer is Apple, which sourced batteries from Varta for its headphones.
The company also said the group’s complex internal corporate structure has made restructuring more difficult. According to Varta, these factors together resulted in a structural financing gap at the parent company level.
Varta said it intends to continue operating its business without restriction within the framework of the insolvency proceedings. Production, service, deliveries, and customer and partner support are expected to continue under the applicable insolvency rules. The company also said wages and salaries will continue to be paid. Varta currently employs around 3,300 people.
Under Germany’s self-administered insolvency process, the company’s management remains in office while a court-appointed supervisor oversees the proceedings instead of an insolvency administrator. The Stuttgart District Court appointed Stuttgart-based lawyer Tobias Wahl as supervisor.
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