Varta creditors push for breakup, household battery unit to be spun off

Breakup plan

A group of key creditors, including Deutsche Bank and investment firms RBC BlueBay, Blantyre, and Whitebox, announced plans to spin off Varta's household battery business into a new ownership structure. The so-called ad-hoc creditor group said this was the most promising path to preserve at least parts of the company. The remaining business segments would likely require further restructuring. The plan is subject to regulatory and other approvals.

Financial distress

The creditors cited an independent analysis by consultancy FTI showing an operational liquidity need in the mid-double-digit million euro range, plus significant additional capital to sustain operations long-term. Despite intensive talks, no investor or stakeholder has committed to providing the required funds, a group spokesperson said. Varta itself has not commented on the announcement.

Despite intensive talks with all stakeholders, no commitment to provide the necessary additional financial resources has been received from any side.

Political and labor reactions

Baden-Württemberg's economy minister Nicole Hoffmeister-Kraut (CDU) said she had held intensive talks with all parties and would continue to do so, aiming to preserve as much industrial value, technological know-how, and as many jobs as possible in the state. She called the looming breakup bad news for employees and the industrial location.

I have held intensive talks with all parties in recent days and weeks and will continue to do so.

IG Metall official Fabian Fink described the situation as a "huge catastrophe," saying jobs and livelihoods of many families are at stake. He demanded immediate transparency and talks with employee representatives.

This is a huge catastrophe. Jobs and livelihoods are at stake – also those of many families.

Ownership and potential bidders

Varta is 50% owned by Austrian entrepreneur Michael Tojner and 50% by Porsche AG. Tojner told the Augsburger Allgemeine that he wants to continue parts of the company but said this would require another restructuring process and "hard cuts." Swiss investor Allswiss submitted a proposal, but the creditor group described it as merely an expression of interest lacking essential information. Allswiss founder Pino Sergio accused the creditors of wanting to liquidate rather than sell.

Whoever would welcome full repayment in their own words and at the same time refuses any discussion about it does not want to sell, but to liquidate – at the expense of the company, its employees, and the other creditors.

Background and prior restructuring

Varta, based in Ellwangen, Baden-Württemberg, employs around 3,260 people and produces household batteries, micro-batteries for hearing aids, and energy storage systems. The company lost its key customer Apple, which shifted to a Chinese supplier for AirPods button cells, leading to 350 job cuts in Nördlingen and Ellwangen. A weaker dollar at the end of 2025 also reduced revenues. Varta had already undergone a restructuring under Germany's StaRUG law, initiated in July 2024 and declared completed in April 2025, but the latest developments indicate that effort was insufficient.