German battery manufacturer Varta AG has entered provisional insolvency proceedings little more than a year after completing a €120 million restructuring backed by Porsche and Austrian investor Michael Tojner.
The Stuttgart Local Court appointed Tobias Wahl of restructuring firm Anchor as provisional insolvency administrator for Varta AG and Varta Microbattery on 28 July.
The two companies had initially sought insolvency under self-administration but have now moved into ordinary provisional insolvency proceedings. Varta Storage and Varta Micro Production are also subject to insolvency proceedings.
Varta AG said the change was intended to simplify the process because of the extensive financial and operational links between companies in the group. Its management, led by CEO Michael Ostermann, will remain in place and work with the provisional administrator.
Operations are continuing, while preparations are being made to finance employees’ wages through Germany’s statutory insolvency payment system.
“We are focusing our efforts on ensuring that business operations continue with as few disruptions as possible. To this end, we are engaging in intensive dialogue with employees, customers, and suppliers,” said Wahl.
Varta AG said it would seek a sale to an investor capable of providing a long-term future for the affected businesses and preserving as many jobs as possible.
The filings cover the parent company and businesses producing microbatteries, customised battery systems and stationary energy storage equipment. Varta Storage supplies residential and commercial storage systems and energy-management technology.
The legally and financially separate Varta Consumer Batteries division, which manufactures household batteries, power banks and portable lighting products, has not filed for insolvency.
“The harmonisation of procedures simplifies the further course of the restructuring. This allows management, the workforce, and the provisional insolvency administrator to work together more effectively,” said Ostermann.
Varta attributed the renewed crisis to deteriorating market conditions, weaker demand, adverse currency movements and the loss of a major customer. The combination produced a structural financing gap expected to emerge in 2027.
The company did not name the customer, but it has been widely identified as Apple, which reportedly decided to transfer production of button cells for its AirPods headphones to China. Varta announced in May that it would cease producing the affected cells at Nördlingen, Germany, with the loss of about 350 jobs.
Reports in Germany said Varta required an additional mid-double-digit million-euro sum to maintain operations but had been unable to secure further investment.
The insolvency represents the failure of a financial restructuring initiated in 2024 to avert the same outcome.
That restructuring reduced Varta’s share capital to zero, eliminating the holdings of its former shareholders and leading to the company’s delisting. It also reduced the group’s debt by €255 million to approximately €230 million.
Porsche and Tojner subsequently supplied a combined €60 million capital injection, while creditors provided €60 million of new financing. Varta declared the restructuring complete in April 2025, saying its finances had been secured for the long term and that the business could return its attention to growth.
Porsche also acquired majority control of Varta’s large-format cylindrical lithium-ion cell operation, formerly V4Drive and subsequently renamed V4Smart. Varta retained a minority interest without operational control. V4Smart is a separate business and is not among the four companies named in the insolvency applications.
The Porsche-controlled company produces high-power cylindrical cells used in the hybrid system of the Porsche 911 Carrera GTS.
Varta’s remaining businesses face the prospect of being divided among different investors. German reports have said a creditor group including Deutsche Bank and investment managers RBC BlueBay, Blantyre and Whitebox is interested in the consumer battery operation. Tojner has expressed an interest in retaining the microbattery and customised solutions businesses.
Varta employs approximately 3,260 people. The company traces its history to 1887 and produces lithium-ion button cells, hearing-aid batteries, nickel-metal hydride cells, customised lithium-ion packs and stationary storage systems.
Insolvency applies to Varta AG, Varta automotive batteries unaffected
The insolvency does not involve the Varta-branded lead-acid automotive batteries widely sold in Europe.
Varta’s former automotive battery operation was separated from the present Varta AG during the break-up of the earlier company. The automotive business is now owned and operated by US low-voltage battery manufacturer Clarios.
Clarios said its Varta Automotive manufacturing, distribution, warranties and customer support were continuing as normal.
