BBS files for Bankruptcy
01-05-2011, 05:25 PM
#1
Former Vendor
Thread Starter
BBS files for Bankruptcy
Unless I'm missing it, I have not seen a post on this forumn yet. BBS has filed for bankruptcy protection. I want to post BBS' official word, sent to us by the head of their US operations in GA last night before the rumor mill gets out of control.
To our valued customers,
BBS has been the recognized leader in the premium wheel category for 40 plus years. As BBS of America, Inc. brings to a close the 2010 year in a much healthier manner; we are very bullish on the 2011 year with a much stronger program in all phases of the North American business.
However, some difficulties have beset our parent company, BBS International GmbH. While not posing any immediate difficulties to our North American operations, we want you to be aware of this information.
BBS International GmbH has filed for Insolvency Protection in what amounts to be a Management Reorganization (similar to our Chapter 11 protection) during a difficult period while in negotiation to sell the one high volume plant in Herbolzheim, Germany. While the sale of this plant (high volume production plant for the OE market) is pending to the Ronal organization, it put undue pressure on credit within BBS International GmbH. This filing will enable BBS International GmbH to continue to do business as usual while the Management is restructured and the sale of the Herbolzheim plant is completed. The sale of the Herbolzheim plant will allow for further investment and streamlining to be made at the Schiltach operation (BBS International GmbH headquarters). The investment in the Schiltach operation will enable BBS to re-focus on its core business of high end Aftermarket, Motorsport and Premium Original Equipment product for the worlds leading automotive manufacturers.
BBS of America, Inc. is in business and is fully operational. The plants in Germany are also fully operational and product is due to be released after this holiday period in the normal manner. The new German product that we have arriving for the spring selling season is still on plan. Our forged wheel business with our partner BBS Japan is also unaffected as we have some new offerings on the forged side of the business also arriving in the spring.
We will do all that is possible to support our customers during this time. We fully expect to continue with our aggressive business plan in 2011.
Hopefully this helps clear things up. BBS isn't going anywhere.
To our valued customers,
BBS has been the recognized leader in the premium wheel category for 40 plus years. As BBS of America, Inc. brings to a close the 2010 year in a much healthier manner; we are very bullish on the 2011 year with a much stronger program in all phases of the North American business.
However, some difficulties have beset our parent company, BBS International GmbH. While not posing any immediate difficulties to our North American operations, we want you to be aware of this information.
BBS International GmbH has filed for Insolvency Protection in what amounts to be a Management Reorganization (similar to our Chapter 11 protection) during a difficult period while in negotiation to sell the one high volume plant in Herbolzheim, Germany. While the sale of this plant (high volume production plant for the OE market) is pending to the Ronal organization, it put undue pressure on credit within BBS International GmbH. This filing will enable BBS International GmbH to continue to do business as usual while the Management is restructured and the sale of the Herbolzheim plant is completed. The sale of the Herbolzheim plant will allow for further investment and streamlining to be made at the Schiltach operation (BBS International GmbH headquarters). The investment in the Schiltach operation will enable BBS to re-focus on its core business of high end Aftermarket, Motorsport and Premium Original Equipment product for the worlds leading automotive manufacturers.
BBS of America, Inc. is in business and is fully operational. The plants in Germany are also fully operational and product is due to be released after this holiday period in the normal manner. The new German product that we have arriving for the spring selling season is still on plan. Our forged wheel business with our partner BBS Japan is also unaffected as we have some new offerings on the forged side of the business also arriving in the spring.
We will do all that is possible to support our customers during this time. We fully expect to continue with our aggressive business plan in 2011.
Hopefully this helps clear things up. BBS isn't going anywhere.
01-06-2011, 02:25 PM
#3
Drifting
Join Date: Nov 2006
Posts: 2,745
Likes: 0
Received 0 Likes
on
0 Posts
Just saw this too, what a shame. You can read the original article here (if you speak german):
http://www.faz.net/s/RubD16E1F55D211...~Scontent.html
http://www.faz.net/s/RubD16E1F55D211...~Scontent.html
