Recaro Automotive has filed for bankruptcy
Recaro Automotive declared bankruptcy in Germany, as reported. The announcement was made four years after private investment firm Raven Acquisitions purchased Recaro Automotive from American seating manufacturer Adient.
It should be noted that Recaro Automotive Seating, the firm that manufactures car seats, is the only one with this name that is insolvent. Recaro Holding, which creates gaming chairs and airline seats, is not a party to the bankruptcy proceedings.
Employees of the firm received notice of the bankruptcy on July 30, and insolvency payments would be used to guarantee their salaries and wages. The firm will continue to fill all current orders and respond to new customer requests while maintaining full production during bankruptcy.
After bankruptcy, it's still to be known how Recaro will move on in the automotive space. The most well-known brand in automobile seats is Reacaro, which supplies OEMs including Ford, Honda, BMW, and others in addition to being the most well-liked aftermarket seat manufacturer.
Wilhelm Reutter started creating automobile bodywork and interiors in 1906, and the company subsequently changed its name to Reutter Carosserie. When Reutter changed its name in 1963 to Recaro, the new business focused on producing seats and seat components, laying the groundwork for the current brand.