Varta declares bankruptcy: crisis in the battery sector in Germany

Earlier this week, it emerged that the company was in danger of being dismemberedas major investors want to separate the domestic battery division from the rest of the group.

The Stuttgart District Court, which is responsible for the case, confirmed receipt of four applications, which are currently being assessed, a spokesperson said.

Varta announced that it will issue a statement on the matter. The so-called ad hoc group of creditors, led by Deutsche Bank and by financial investors Rbc BlueBay, Blantyre e Whiteboxjustified his action by citing the company’s precarious financial situation.

An independent analysis revealed that Varta requires tens of millions of euros of additional short-term financing. Despite intense negotiations, no one was willing to provide additional capital.

According to data provided by the company itself, Varta takes approx
3,260 peoplemany of them at the headquarters in Ellwangen, southwestern Germany.

Varta published its latest financial results in 2024. On that occasion, the company recorded a turnover of around 793 million euros and a loss of 64.5 million euros.

In addition to its well-known household batteries, the group produces, among other products, microbatteries for hearing aids and energy storage systems.

In 2024, Varta embarked on a restructuring process to avoid failure. In the course of this process, former shareholders lost their shares and creditors gave up some of their claims.

In early April last year, Varta said the restructuring had been completed and the company was back on the right track.

However, the financial situation worsened again. A plant with around 350 employees in Nördlingen, Bavaria, is expected to close in the autumn.

Applethe plant’s largest customer, has withdrawn from production, as revealed in May. Varta will continue to produce button batteries for the American company’s wireless headphones until November; however, in the future, these are likely to be purchased in Asia.