Seat manufacturer Recaro has entered administration

German seat manufacturing expert Recaro Automotive GmbH is insolvent. It has filed for self-administration with a view of restructuring and “standing on solid ground again in a timely manner.”

While the majority of its business is supplying the automotive trade – new cars as an OE partner, the aftermarket and motorsport – it also has a range of sim racing equipment.

According to the Kirchheim unter Teck-headquartered outfit, it has struggled to be competitive in an environment with “extreme” price increases and the loss an of unnamed contract.

A preliminary self-administration has been approved by Esslingen court, with plans to continue production and order fulfilment during the restructuring process. According to the company, insolvency payments will “secure employees’ wages and salaries” but assurances for future employment post-restructuring remain absent.