Formula One and Indycar supplier BBS GmbH has filed for bankruptcy protection in Germany – on the eve of the car alloy wheel maker's 50th anniversary. It is the third time in 13 years that BBS has filed for bankruptcy.
BBS' contract to supply wheels for 2021's entire Nascar Cup Series field is not considered to be in peril, with the company acquiring them off its major Formula One supplier, the Washibeam group of Japan.
BBS, which designed and manufactured the poster wheels for every race and sports-car fanatic in the 1990s, was responsible for bringing some of the world's most popular drivers to victory everywhere from Indianapolis to Le Mans to Formula One.
The ongoing global health nightmare is one of the biggest reasons BBS has sought insolvency, and was seen as a necessary move because of the unexpected cancellation of confirmed payments that are due in the coming months.
In 2007, BBS applied for bankruptcy and was acquired by a Belgian group. Another insolvency took place a few years later. Since 2015, a South Korean company called Nice Corporation has been the majority shareholder of BBS.
Sources said that as the bankruptcy has been filed only in Germany, BBS could be subjected to reorganization. Production will continue for the time being, the company disclosed on Monday.
Marc-Philippe Hornung and Thomas Oberle have been appointed as bankruptcy administrators. Both men are reportedly experienced in this field, with Oberle having served as insolvency director for the group's previous guise, BBS International GmbH, in 2011. That followed a major cash crunch for the company back in 2007, making the latest filing the third time BBS has almost totally crumbled.
BBS cites the difficult market environment brought about by the pandemic – along with the accompanying temporary suspension in operations of the company's two facilities –as the main reasons for its current plight.
BBS was formed in 1970 and named after its founders – Baumgartner, Brand and Schiltach. After initially making auto panels, a three-piece wheel designed in 1972 transformed the group's course. Today, BBS remains one of the most popular names in the after-market wheel business as it continues to supply OEM rims to a large variety of manufacturers.
BBS wheels can be seen on almost every road car brand – Porsche, Ferrari, Audi, Mercedes-Benz, Volkswagen, BMW, Volvo, Toyota, Jaguar, Lexus, Rolls-Royce and Subaru.
The company concluded in its media release, "Times of change lie ahead but together we'll release the strength and energy needed to preserve the legendary BBS brand and secure its future," Matt Robinson of Car Throttle quoted the release as saying in his story.
