The wheel business isn’t what it used to be, even for a veteran brand like BBS. The German company, founded 50 years ago, has filed for bankruptcy in an effort to remain solvent.
This is the company’s third bankruptcy filing in thirteen years, in fact. The company was rescued from peril in 2007 by Belgian investment firm Punch International. That arrangement only lasted four years, and in 2011 the iconic brand was once again sold, this time to South Korea’s Nice Corporation (seriously).
Citing financial difficulties due to the global COVID-19 crisis, the company is looking to restructure its debt in order to sty afloat. The bigger issue, however, is likely a long-term drop in demand for expensive aftermarket wheels. As a premium brand, BBS also faces steep pricing challenges from other wheel companies, many of which market similar looking wheels at a fraction of the price.
BBS nevertheless remains an important supplier to many OEMS as well as numerous racing series around the globe. Perhaps the third time is truly a charm and the company can keep on making wheels for enthusiasts who appreciate quality, style and performance.
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