Famous Wheel Brand BBS Just Declared Insolvency For The Fifth Time Since 2007

If you ask anyone who’s modified their European, Japanese, or even American sports car what reputable wheel brands come from Germany, you’re going to get one answer: BBS. From an official supplier of wheels for some of the hottest performance cars of the ’80s, ’90s, and 2000s to a brand with a rich racing history and strong aftermarket credibility, on the face of things, BBS has the brand equity that every wheel brand craves. So how on earth did it just declare insolvency again for the second time in a year?

On Monday, Tyrepress reported that BBS had declared insolvency yet again. Yes, back in 2023, BBS also declared insolvency, just three years after the previous filing for insolvency in 2020. At the time of that insolvency, Tyrepress reported, “It is the third time in the past 15 years BBS has done so. There were also bankruptcies in 2007 and 2011, our German group publication Neue ReifenZeitung (reifenpresse.de) reported.” Overall, we’re looking at five bankruptcies in 17 years, and two in the past year, all of which speaks to a pattern.

See, companies don’t often declare insolvency that frequently based on bad luck alone. Often, threads and commonalities exist that trap institutions in these cycles, so let’s pull them apart and see just what’s going on with BBS. After all, one of the world’s most beloved wheel brands ought to be doing better than this, yeah?

From an aftermarket consumer side, one thing BBS could’ve done a better job with over the past few years was keeping up with trend cycles. The brand has an extensive back-catalog of desirable wheels, and as models enjoyed resurgence in popularity and appreciation, it would’ve only made sense to dig the molds out of storage and capitalize on that. Case in point? The BBS RSII. This handsome wheel is hugely desirable for 2000s OEM-plus builds of collector-grade cars, to the point where it seems almost everyone under the sun is copying it in some capacity. You’d think that BBS would cash in on this trend, but the RSII remains discontinued. It’s the same deal with the RK, another icon of the aughts that desperately needs a revival.

So, what’s BBS been up to over the past few years? Well, the brand decided to chase a weird niche called BBS Unlimited, a wheel design meant to allow fitment on a variety of cars. Customers choose their finish, diameter, width, and concavity, and then all wheels ship with a 5×117.5 mm bolt pattern that nothing uses –nothing except BBS’ special adapters, that is. It’s an odd setup to solve a problem that doesn’t really exist, and might not have been the most prudent use of resources.

Speaking of resources, where has BBS been getting them from? Has the brand been passed around by various private equity firms looking to get rich quickly over the past two decades? For the most part, yeah. See, back in 2007, BBS declared insolvency and was taken over by holding firm and investment company Punch International. According to a media release regarding the purchase, a few reasons likely contributed to that 2007 bankruptcy:

A number of disadvantageous strategic choices led to the company’s bankruptcy. BBS decided in particular to expand its field of action from the profitable premium segment for exclusive vehicles to the medium-sized vehicles characterised by high volumes but low margins. The opening of establishments in Italy and China, and the accompanying start-up problems caused considerable losses.

While Punch claimed confidence in its ability to put BBS back on track, those plans ended up being short-lived, with BBS declaring insolvency again in 2011. In 2012, the assets were split up, with BBS’ motorsports division going to Japan’s Ono-Group, and most of the road wheel operations going to Austrian private equity firm Tyrol Equity AG. Yep, that’s two changes of ownership in five years, but this pattern wasn’t done yet.

In 2015, BBS GmbH was sold to NICE Corp., a Korean investment group, took majority ownership of BBS in 2015. However, by 2020, it became clear that the situation at BBS had become unsustainable, with the firm filing for insolvency. During the restructuring process, Business Korea claimed that the wheel brand had “suffered significant losses,” and that dumping BBS would resolve “factors impeding earnings growth” at NICE. Of course, that would require finding a new buyer, but for a brand as famous as BBS, that wouldn’t be an issue.

In March of 2021, aftermarket suspension titan KW Automotive acquired the insolvent BBS, along with BBS USA, with the hopes of righting the ship. Optimism was high, with KW managing director Klaus Wohlfarth stating, “We will build on the successes of the past. With a calculated expansion of the iconic BBS designs, and with further investments in sales and digitalization thanks to our worldwide network of specialist dealers, we will certainly and very quickly achieve visible success.”

Well, that lasted all of about two years. While KW Automotive still holds onto BBS USA, in November 2023, Polish newspaper Rzeczpospolita reported that BBS Autotechnik GmbH had filed for insolvency yet again, with the report claiming, “The reason for the financial difficulties was the sharp increase in energy costs, which burdens energy-intensive production. Additionally, necessary price increases with rising inflation resulted in reduced sales.” After filing for insolvency, assets of BBS were quickly sold to Turkish ISH Holding. Yep, another holding company. However, a trademark dispute with KW Automotive resulted in things turning south, with Tyrepress reporting that employees hadn’t been paid wages for May or June, and the latest insolvency filing coming this month.

By now, it seems that years of ownership instability and some sub-optimal product moves may have contributed to BBS’ latest insolvency, but it’s not too late for a turnaround. With the right funding, right product, and crucially, the right people, perhaps BBS would finally be able to capitalize on its strong brand. So, what happens now? Well, in the longer run, someone will want BBS as a brand, but in the short-term, the effects of this insolvency filing will likely play out differently for automakers than for aftermarket consumers. For those looking for a set of BBS wheels for their own ride, inventory still exists, so wheels are on shelves, and limited operations continue. For automakers, just-in-time delivery practices could remove these branded wheels from options lists, should operations for those wheels halt.

Update: There is a bright spot in this whole situation — operations at BBS USA and BBS Japan are unaffected by the proceedings regarding BBS Autotechnik GmbH. In the words of BBS USA:

Our supply of BBS forged products from BBS Japan remains unaffected by the insolvency filing in Germany. We will continue to provide forged wheels consistently and we have increased our orders to meet demand.

Basically, BBS Autotechnik GmbH supplies cast and flow-formed wheels, while most forged wheels are made by BBS Japan. So, good news! If you want a set of E88s, RS-GTs, LMs, or any other forged BBS wheel, your order will be fulfilled. Keep on rolling, baby.

(Photo credits: BBS, eBay)

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