Did Private Equity Push Recaro Into Bankruptcy? - The Autopian
Recaro Automotive just filed for insolvency, leaving employees, carmakers, and fans wondering just what happened.
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Apollo
GT Owner
fjpikul
GT Owner
KennethClay
GT Owner
Agreed. The equity holders will get clobbered, and maybe even the debt (if there is any). But this is a storied company, with about $150 million in annual revenues. So I doubt the company is going away.
Private Equity always gets a bad rap, though I will say that the auto manufacturers are notoriously tough customers. Remember Inaki Lopez of VW fame? He was such a tough purchasing czar that his name became a verb!
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PeteK
GT Owner
It's yet another business maneuver. Bankruptcy is just part of the financial game. Every major US airline has been through bankruptcy too.
Brombear
GT Owner
you mean José Ignacio López de Arriortúa ?
You‘re right, a real tough guy but in the end added much more Problems than he solved. but there is still this attitude, I had the „pleasure“ to attend such a negotiation meeting between a car manufacturer and a level one supplier still remember someone saying „no risk no fun“ after the supplier concluded that making even a very small profit from a five year services contract would be questionable. That industry is tough.