By now, it’s pretty obvious that the COVID-19 pandemic has not been kind to many industries, and this is especially true with the automotive industry. This also extends to numerous aftermarket retailers because like most businesses, they too had to close when the enhanced community quarantine was implemented back in March.
Even huge racing organizations like Formula 1, the Super GT series, and NASCAR have had to cancel racing events, and are only recently getting back on track. To sum it up, it’s a very unfortunate year for everyone.
To make this year even worse than it already is, there’s the announcement that BBS, a popular aftermarket company, announced bankruptcy due to the aforementioned pandemic.
Currently, it employs around 1,200 people, and it has been making some of the most recognizable aftermarket wheels like the iconic BBS Super RS, the BBS LM, and many others.
BBS Wheels is among the many affected by the coronavirus pandemic [Photo: BBS Wheels]
When it filed, BBS blamed the decreasing demand for aftermarket parts caused by the coronavirus pandemic. Moreover, the company also had to cease its production and was dealing with a supply problem.
This is also compounded by the fact that numerous racing events had cancellations due to the same reason. NASCAR, which BBS supplies lug nut wheels, also had to cancel its own events due to the pandemic.
Note however that despite filing for bankruptcy, the company as we know it will not cease to exist. This is because the specific filing in Germany will instead allow BBS to buy some time to gain momentum once again.
There are also rumors that Nice Holdings Co., a South Korean company that bought BBS back in 2015, is currently looking for a new owner for BBS. Or rather, someone who can turn the fortunes of the beleaguered aftermarket wheel maker around.
Also, do remember that this isn’t the first time BBS filed for bankruptcy. This is actually the third time as it first filed for bankruptcy in 2007, and the second was in 2011. So, we can say that this is not the company’s first rodeo.
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BSS Wheels made it out of two bankruptcies before, so it'll probably make it now.
However, this year is notably a far contrast to how BBS performed in 2018 wherein it reported a massive 90 million euro revenue. That is of course a far cry to what it’s experiencing now, but do remember that several racing events have been slowly getting back on track.
BBS can also lean on the possibility that more aftermarket shops will soon reopen its doors for it to be able to climb out of its slump.
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