Insolvency administrator expects investor solution for Varta

The insolvency administrator of the struggling battery manufacturer Varta expects an investor solution for the company in the coming months.

“The interest in Varta’s core technological competencies remains unchanged in the market,” said Tobias Wahl from the law firm Anchor in Ellwangen. The aim is to successfully complete the sales process in the coming months. A spokesman for Wahl was unable to answer whether the interested parties were financial investors or industrial companies.

The insolvency administrator said that the clear aim of the process was to develop a future-proof continuation solution that would ensure the company's survival. In mid-July, the company from Ellwangen, Swabia, initially filed an application for self-administration insolvency proceedings for Varta AG as the parent company and three other units. The household battery business, which important donors wanted to separate from the group, was not affected. Initially, the four units were in classic preliminary insolvency proceedings.

The Nördlingen location will be closed as planned

Now the Stuttgart District Court opened insolvency proceedings for the four affected companies on October 1st. Wahl further said that thanks to the great commitment of everyone involved, business operations were able to be stabilized during the preliminary insolvency proceedings. This is a good starting point for further renovation. According to Wahl, around 2,300 people worked at the four companies affected by the bankruptcy.

While business operations have been stabilized at the locations, according to the insolvency administrator, there is an irreversible decision for some areas: For Varta Microbattery, due to the loss of its most important customer, the decision to end production at the factory in Nördlingen, Bavaria, will remain in effect in the spring. This step will be implemented as planned. Around 350 people are now losing their jobs here. The closure was announced in mid-May. According to reports, the major customer, who is now withdrawing, wants to purchase its new generation batteries from China in the future.