The Recaro Child Safety GmbH & Co. KG, a manufacturer of child seats and strollers based in the Kulmbach district, will cease operations on 31 July 2018. The challenging market environment and the ongoing loss situation make this decision inevitable, according to a company report.

The Recaro Holding, which employs more than 2,400 people worldwide, closes its subsidiary Recaro Child Safety. This was announced by the Recaro Group based in Stuttgart in a press release on Monday, July 2, 2018. It justified its decision with the “continuing negative sales and earnings development of the company”, which has intensified once again since the beginning of the year. This concludes the 20-year history of Recaro child seats which have won numerous design awards but not always received positive reviews from Stiftung Warentest.

Bitter decision

Extensive measures introduced in the previous year to reduce costs, improve positioning in the highly competitive market and develop new products were implemented but they were not sufficient to compensate for the negative business development, as stated in the press release. Ralf Kindermann, Managing Director of Recaro Child Safety, was quoted as follows: “The decision is bitter, but inevitable due to the continuing loss situation. We will do everything in our power to ensure a fair and orderly termination of operations and have the full support of Recaro Holding in this respect”. With its support, a transfer company has already been established. Kindermann emphasizes that the company is also open to discussions with investors who may be interested in parts of the company.

117 employees affected in Marktleugast

Approximately 190 Recaro Child Safety employees are affected by the closure. 117 of these at the Marktleugast site. Within the framework of the orderly closure, however, there will be offers to make the transition to a new employment relationship easier for employees.

Closure in three steps

According to the company, the closure will take place in the following steps: discontinuation of regular business operations as of July 31, 2018, sale of child seats and strollers until December 31, 2018, provision of customer services including warranty until December 31, 2019, and normal processing of existing orders.


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Image: Recaro