BBS Wheels Reportedly Files For Bankruptcy In Germany
2020 has been a difficult year for most companies, and that puts it lightly. 2020 was a difficult year for everyone, and the financial impact of the coronavirus will certainly lead to the counting of certain companies. One of the automotive companies could be BBS, which is said to be bankrupt.
This would be the third time that the German-based custom wheel manufacturer has been in hocks. In 2007, the company went bankrupt and was eventually bought by a Belgian company. Another bankruptcy occurred a few years later and, from 2015, a South Korean company called Nice Corp was the majority shareholder. Self-evolution reports that the current financial crisis for BBS is the result of an “unexpected disappearance of the promised payments”, according to a press release allegedly from BBS. What exactly this means is unclear.
A report by Engine shown offers a little more insight. Bankruptcy is apparently only in Germany, with a decrease in demand and a halt in production due to COVID-19. This decision is similar to a Chapter 11 filing in the United States, which means that the BBS shouldn’t just go away. Rather, it is a reorganization which, in theory, will allow the company to continue operating. As such, the report indicates that BBS will continue its normal operations for the time being.
How it will affect BBS in the United States is unclear at this point. The automaker has entered into an agreement with NASCAR to supply single-studded wheels to next-generation cars in the series. Yes, this means that there are no more twenty-legged ballets with the teams of the pit team during the four-tire stops. It also means that the days of the 15-inch black Steelies on cars are over, as BBS offers would be 18-inch aluminum wheels.
It is unlikely that this deal alone will get the BBS out of the financial heat, but getting a little more publicity from America’s premier motorsport should certainly not hurt.