The impact of this filing on Recaro, known for supplying sports seats to brands such as BMW, Ford, and the VW Group, remains uncertain. Employees were reportedly unaware of the bankruptcy, and the IG Metall trade union, representing 215 workers at Recaro's factory in Kircheim unter Teck, Germany, has demanded transparency from the company’s management.
In January 2020, Recaro Automotive sold its business to Raven Acquisitions LLC, a Detroit-based investment firm. At that time, Recaro reported approximately $150 million in revenue for 2019, stating that the new ownership would enhance flexibility and faster decision-making to better meet market demands. The financial moves leading to the current insolvency are unclear.
Recaro's history dates back to 1906 when Wilhelm Reutter, a master saddler, started designing car bodies and interiors. The company launched its first sports seat in 1965 and the first road-legal full shell seat in 1967. Over the years, Recaro introduced several innovations, including a seat with headrest speakers (1977), the Recaro A8 sports seat with a plastic backside (1989), the first retrofit seat with a universal side airbag (2004), and a lightweight composite shell seat in 2005.
Source: Autocar