Recaro Child Safety to end business operations at the end of July 2018
Recaro Child Safety GmbH & Co. KG, manufacturer of high-quality child seats and strollers, will be ending its business operations effective July 31, 2018. The parent company Recaro Holding GmbH made this decision with the consent of the advisory board of the Recaro Group. Business operations will continue without limitations until the company closes; orders will be processed as usual. The closure will take place in the following steps: regular business operations will end on July 31, 2018; child seats and strollers will be sold until December 31, 2018; customer service including warranties will be provided until December 31, 2019.
The decision to close the company was made due to the company’s ongoing negative sales and earnings trend, which has deteriorated once again since the beginning of the year. While comprehensive measures introduced last year to reduce costs, improve the positioning in an intensely competitive market, and develop new products were able to be implemented, they were not enough to compensate for the negative business development.
190 employees of Recaro Child Safety worldwide are affected by this decision to close the company; 117 of these individuals are at the Marktleugast site in Germany. Within the scope of the orderly closure, there will be offers to make it easier for employees to transition to a new employment opportunity. A transfer company, for example, has been founded with the support of Recaro Holding.
Ralf Kindermann, Managing Director of Recaro Child Safety: “This was a tough decision to make, but had become unavoidable due to the ongoing loss situation. We will do everything in our power to make sure that the closure of business operations is handled in a fair and orderly manner, and have the complete support of RECARO Holding in this regard. At the same time, we are, of course, open to talks with investors who may be interested in parts of the business.”
Recaro Child Safety GmbH & Co. KG
Recaro Child Safety, based in Marktleugast and Stuttgart and with subsidiaries in France, Great Britain, China, and Japan, has importers in more than 50 countries and is an independently operating division of the Recaro Group. The Recaro Group includes Recaro Holding, headquartered in Stuttgart, as well as the independent divisional company Recaro Aircraft Seating in Schwaebisch Hall. The Group’s consolidated sales amounted to 540 million euros in 2017. Currently the Group employs more than 2,400 employees at its locations around the world. The automotive seating business is operated by the licensee Recaro Automotive Seating. As the current six-time winner of the German Design Award, Recaro is one of the most successful design brands in Germany.
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