Famed wheelbuilder BBS has filed for Bankruptcy
The company was owned by South Korea’s NICE Holdings Co since 2015
BBS will continue normal operations for the time being
Renowned wheelmaker BBS has filed for bankruptcy yet again, this time in a German court. This latest bankruptcy filling submitted on July 16 is the third in the last 15 years for BBS who also sought protection from its creditors in 2007 and 2011.
BBS is currently owned by NICE Holdings Co. based in South Korea. The company is known for pioneering the three-piece racing wheel in 1972 and more recently the Air Inside Technology to increase air volume within ultra low-profile tires.
The tuning company also began supplying single lug nut wheels to NASCAR earlier this year. BBS was purchased by NICE in 2015 and currently employs 1,200 people including a large group in the US.
In its filling, BBS blames falling demand for tuning products and the difficult automotive retail environment as a result of the coronavirus pandemic. Moreover, BBS has had to halt production of its wheels because of COVID-19 and has been struggling with a supply problem.
The bankruptcy filing does not mean BBS will cease to exist, however. Much like Chapter 11 bankruptcy in the US, the company is hoping to buy some time as it restructures its business. As explained in the filing submitted in Germany (text in German) the move will give BBS “a second wind”.
In 2018, BBS reported revenues of nearly 90 million euros with a lost of just over 11 million euros. Reports suggest that NICE Holdings Co. will be looking for a new owner for BBS who can turn the company around.