Recaro, the Car World's Famous Seat Maker, Files for Bankruptcy

[Old Fart]

https://www.roadandtrack.com/news/a6...ECqrk8K2NjyvKw

[RedSN]

We were discussing that at wing night. Not even sure how that’s possible given the number of OEM contracts they appear to have. Also, not like they are selling their products at discounted competitive prices. Gotta be something going on.

Going to hang onto mine like collector items now.

[ZR]

BBS wheels joined the same party yesterday.

[hammerhead]

wow! too many OEMs may have been the issue. I think they tend to beat the cost down and maybe stretch out payments. Who knows but kind of shocking!

[Laffs]

We were discussing that at wing night. Not even sure how that’s possible given the number of OEM contracts they appear to have. Also, not like they are selling their products at discounted competitive prices. Gotta be something going on.

Going to hang onto mine like collector items now.

Lots of OEM contracts may very well be a major contributing factor. I have friends in the Tool and Mold industry and the payment terms on OEM contracts can really tax a company. Like putting out millions in developments costs 12-18 months before you can even expect to see your final payment. Leads to carrying a lot of debt. That and while Recaro is a huge giant name to most of us that have been in the modifying game for a while, go to any car show and you will see an endless sea of brands like Corbeau, Bride, Sparco, NXT, JIC, Cobra, Cipher, Braum, and others so theres a dwindling market share to be had aftermarket.

This is probably not the end of the road, will bet there's a restructure and maybe a split of the OE and aftermarket divisions. They already spun off the Airplance, office chair and, child car seat divisions and those are unaffected by this filing.

BBS wheels joined the same party yesterday.

5th go in bankruptcy for BBS, also doesn't affect the forged wheel division, the bankruptcy is in the cast wheel division iirc.

[5.4MarkVIII]

Seems to be a thing. The biggest appliance parts producer in North America went chapter 11 early in the year.

As Laffs said. I’m my limited and small town experience. The bigger the company you deal with the more overhead you have to carry. And they have no qualms with leaving you high and dry if they decide to go another route.