Fanatec, the company that makes racing video game peripherals like wheels, pedals, and shifters for dedicated cockpits and other sim racing setups, could be in trouble. Its parent company, Endor AG, filed for insolvency on Tuesday in a German court after negotiations failed with Corsair, a strategic investor that had announced plans to buy the beleaguered company just a few months ago. Endor AG has too much debt— €70 million ($75.7 million) in bank debt and €95 million ($102.8 million) in total liabilities.
With annual sales of around €100 million ($108.2 million), Endor, the German electronics company, decided it was best to file for insolvency. The firm had been attempting to restructure itself under German bankruptcy law, but that has failed. According to the company, the former CEO who is also the majority shareholder, convened “an extraordinary general meeting in order to prevent a reorganization under the StaRUG [German Company Stabilization and Restructuring Act] without presenting a viable alternative scenario.”
While this was happening, negotiations between the majority shareholder and all shareholders on a financial reorganization fell through due to “unrealistic demands.” Corsair then decided it could not finalize its plan to purchase Endor because “the ongoing disruptions made a reorganization under the StaRUG impossible.”
Endor initiated insolvency proceedings to protect and secure its Landshut site and jobs. Its management board, which blames poor decision-making for its troubled financial state, is hopeful that Endor will find a buyer. The filing does not affect Endor AG’s foreign companies.
“As part of the insolvency proceedings, we will continue the restructuring and work at full speed to reorganize the company. We are confident that we will emerge stronger from this situation and return to a sustainable, profitable growth path,” said Endor AG CEO Andres Ruff. Business operations will continue during the proceedings, including sales, warranty repair services, and software and driver updates.
