Almost everyone has their own product at home, now they're on the verge of collapse: hundreds of workers out of work

The German battery manufacturer Varta faces imminent collapse after failing to secure new financing, according to reports from local media. The company, which has been a household name for over 139 years, has filed for insolvency under its own management, with major shareholders threatening to split off its profitable consumer battery division. This marks the second time in Varta’s history that it has come close to dissolution, following a previous crisis in the early 2000s. Varta's financial troubles have deepened since 2022, when sales of small, wireless batteries, primarily for devices such as remote controls, lights, and toys, plummeted by nearly 47 percent. The decline was driven by falling orders from Apple, a key client, and increasing competition from Asian manufacturers. In July 2024, Porsche and investor Michael Tojner, who previously owned parts of the company, allowed existing shareholders to vacate their positions, effectively removing Varta from the stock exchange. The move came amid growing uncertainty about the company’s future. In recent weeks, Varta has initiated a restructuring process, aiming to preserve some operations while addressing its dire financial situation. A group of major creditors, including Deutsche Bank and several hedge funds, has proposed splitting the business into two separate entities, one focused on consumer batteries and another handling microbatteries. This would allow the more profitable segment to continue operating independently, potentially saving jobs and maintaining market presence. However, the plan requires regulatory approval and additional capital injections, neither of which have materialized yet. The restructuring effort follows a failed attempt in April 2024 to stabilize the company through internal reorganization. Despite these efforts, the firm continues to struggle with liquidity issues, requiring operational cash flow in the millions of euros. Independent analysis by consulting firm FTI revealed that Varta lacks sufficient working capital to sustain current operations, further complicating its ability to meet obligations. Michael Tojner, an Austrian entrepreneur and former co-owner of Varta, has expressed concerns about the company’s direction. He criticized banks for their role in funding the business and emphasized the challenges of producing batteries in Europe compared to Asia. High energy costs, labor expenses, and other location-specific disadvantages make European production less competitive, he argued. These factors have contributed to Varta’s declining relevance in the global battery market. The loss of Apple as a major customer has had a direct impact on Varta’s operations. In May 2026, Apple terminated its contract with the company, citing plans to manufacture batteries in China instead of Germany. As a result, the factory in Nördlingen, Bavaria, which employs approximately 350 workers, is set to close in October. This decision has intensified pressure on Varta, leaving it without one of its largest clients and forcing it to reconsider its long-term strategy. With no immediate relief in sight, Varta stands at a critical juncture. Its survival hinges on securing additional investment or finding alternative solutions to maintain core operations. Meanwhile, the fate of hundreds of employees hangs in the balance, as the company’s leadership grapples with the possibility of complete liquidation. The coming months will determine whether Varta can navigate this crisis or face permanent dissolution.