Reiff Reifen files for insolvency

Harriet Matthews
13 February 2020

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Reiff Reifen has filed for insolvency, according to a filing with Frankfurt's district court of 11 February 2020, marking the third insolvency filing of a Germany-based company in Bain's European Fintyre Distribution Group.

Group subsidiary Reifen Krieg also filed for insolvency according to a filing on 6 February 2020. Reifen24, which is managed by Reifen Krieg, filed for insolvency on 11 February. Miguel Grosser has been appointed as insolvency administrator for both companies, according to the filings.

Bain announced in October 2017 that it was creating a European tyre distribution group under a holding company via strategic acquisitions of tyre wholesale and retail companies, pursuing a market consolidation strategy. The group of companies is now known as European Fintyre Distribution and is headquartered in London.

Bain bought a 90% stake in Italy-based Fintyre in March 2017 via Bain Capital Europe IV, which held a final close in October 2014 on €3.5bn. The GP secured a debt package from Blackstone's credit arm, GSO Capital Partners, and a rolling credit facility from HSBC.

The company bought family-owned distribution company Reiff Group's tyres and automotive technology group, Reiff Reifen und Autotechnik, in June 2017.

The company also bought Germany-based Reifen Krieg in June 2018. Media reports at the time said that €650m of Fintyre's €1.1bn turnover would be generated in Germany following the acquisition.

European Fintyre Distribution announced the acquisition of Germany-based Rs Exclusiv Reifengrosshandel and Tyrexpert Reifen and Autoservice in May 2019. The company said in a statement that it had recorded 2018 turnover in the German market of €740m.

According to Fintyre's website, Reiff Reifen und Autotechnik manages the distribution platforms NETTO, A/B/S Autoservice, Tyre1 and ReifenDiscount.de. Fintyre also operates the Secura and Duro retail networks.

Bain had not responded to a request for comment at the time of publication.

Germany's automotive sector has struggled to adapt to technological changes and demands in recent years, with the transition away from combustion-based engines and towards electric cars and fuel cells causing problems for original equipment manufacturers and retailers alike. According to Unquote Data, 2019's one exit from an automobiles and auto parts company from private equity came in the form of Ardian-backed Weber Automotive's insolvency in July, as reported by Unquote.