Fanatec Faces Turmoil As Parent Company Endor AG Declares Bankruptcy

Fanatec, which develops wheels, pedals, and shifters for specialist cockpits and sim racing setups, may be in peril. On Tuesday, Endor AG, its parent company, filed for bankruptcy in a German court after discussions with Corsair, a strategic investor who had declared ambitions to purchase the struggling firm months earlier, failed.

Endor AG has too much debt—€70 million in bank loans and €95 million in liabilities. With €100 million in yearly sales, German electronics business Endor filed for bankruptcy.

The company failed to reorganize under German bankruptcy legislation. According to the corporation, the former CEO and majority shareholder called for “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.” Negotiations between the main shareholder and all shareholders on a financial restructuring failed owing to unrealistic demands.

Corsair then chose to cancel its Endor acquisition because “the ongoing disruptions made a reorganization under the StaRUG impossible.” Endor declared insolvency in order to save its Landshut facility and employment. Its management board, which blames poor decision-making for its financial woes, hopes Endor will find a buyer.

This filing does not impact Endor AG's international entities. Endor AG CEO Andres Ruff is convinced that the company will recover and resume profitable growth. Sales, warranty repairs, software, and driver updates will continue throughout the proceedings.