Batteries: Varta files for bankruptcy – Apple’s departure takes its toll
The difficulties facing the long-established German group worsened last spring when it lost its main client: Apple now sources its supplies from China.
The German battery manufacturer Varta has filed four insolvency petitions with the court in Stuttgart, marking a new chapter in the crisis that has long been affecting the long-established group.
The company, known for its household batteries but also active in the production of microbatteries for hearing aids and electronic devices, is suffering from heavy debt, a situation exacerbated by the loss of Apple as its main customer.
The group currently employs over 4,000 people worldwide, and its crisis is a further sign of the difficulties facing parts of the German manufacturing sector.
The turning point for the company came in the spring, when Apple decided to outsource the production of CoinPower rechargeable batteries for AirPods to Chinese manufacturers. The decision is also expected to lead to the closure, scheduled for October, of the factory in Nördlingen, Bavaria, where around 350 people are employed.
The situation was then brought to a head by the demand for loan repayment made by the main creditors, including Deutsche Bank and a number of investment funds, which exacerbated the company’s already precarious financial position. At the same time, Porsche AG’s shareholders and the Austrian investor Michael Tojner ruled out any further capital injections, thereby removing a potential lifeline.
