Recaro Automotive saved from bankruptcy by Proma Group

Recaro Automotive is a leading supplier of car seats, especially for performance applications. However, the German company encountered a difficult time earlier this year and filed for bankruptcy protection on May 7.

Fast forward to today and new investors are planning to intervene and take control of the company. As first reported by Piston Heads Dec. 4, The Italian car supplier named Proma Group has signed an investment agreement with Recaro Automotive to take over the company and resume production by early next year.

As part of the transition period, the Proma Group will retain several former sales and technical employees at Recaro Automotive's headquarters in Kirchheim unter Teck, Germany. Recaro Automotive reportedly has 215 employees on its German sites, including the plant.

Proma Group is also a leading manufacturer of car seats and operates 3 factories across 26 continents, and the company plans to move some of Recaro Automotive's production to its Italian plant.

The acquisition of Proma will not affect Recaro's North American and Japanese operations. Other departments of Recaro, including those responsible for aircraft, offices, game seats and baby seats, will also not be affected.

"Our investment in Recaro Automotive will strengthen our ability to deliver premium seat products while incorporating the most cutting-edge innovations in the automotive sector," Luca Pinot, Ceo of Proma Group, said in a statement.