Fanatec, a leader in sim racing hardware, is now facing an uncertain future after its parent company, Endor AG, filed for insolvency in German court. The news was announced Wednesday in an official release and comes almost three months after PC accessory giant Corsair announced a plan to acquire Endor and restructure the company’s then $75 million in debt.
Endor says that, at least for end users, business operations will proceed as normal. “Sales and warranty and repair services will continue without restriction, and customers will continue to receive driver and software updates,” the firm said in a statement. However, there are conflicting indications of whether Corsair is still involved with the German firm. Endor’s release says “The management board assumes that Corsair is still interested in acquiring Endor AG,” while a report from sim racing news outlet Overtake states “Corsair is out as a strategic investor.” According to Endor, Corsair stopped making payments to it due to “ongoing disruptions” in the reorganization effort. The Drive has reached out to Corsair for a statement and will update this story with whatever we learn.
Endor’s CEO Andres Ruff listed several reasons for the company’s current position in the note to the public, headlined by “numerous wrong management decisions in recent years.” An “oversized” construction of the company’s new headquarters, “miscalculated” orders of merchandise and critical components like chips, and “failures” to introduce processes that would’ve saved the company millions are all to blame, per Endor’s management board.
Fanatec’s founder and former CEO Thomas Jackermeier was ousted from his chief executive post in March, yet still retained his sizable stake in the company and continued as Endor’s largest shareholder, according to GTPlanet. The founder was reportedly assembling an effort to take back the company, but Corsair announced its intent to take over Endor in May and assumed some of Endor’s intellectual property as collateral. Jackermeier then called an “extraordinary general meeting,” per Endor’s statement, to stymie the existing reorganization effort in favor of his own, though negotiations broke down due to what the company termed “unrealistic demands.” Corsair subsequently decided to cut off its line of funding. Today, Endor’s total liabilities stand at $103 million against $108 million in annual sales.
While the writing’s been on the wall for weeks, and Corsair never tried to obscure Endor’s “short-term cash needs” and outstanding debt as a major factor in its ability to absorb the company, the news nevertheless comes as a shock to the sim racing industry and enthusiasts everywhere.
Fanatec’s been active in this space since 1997 and beat rivals Logitech and Thrustmaster to market with an affordable, mainstream direct-drive wheel base three years ago. It’s sponsored real-life motorsports, partnered with major players like Gran Turismo to release bespoke hardware and become the go-to recommendation for anyone seeking state-of-the-art equipment without completely breaking the bank. However, the company’s technical prowess has historically been limited by logistical and quality control woes (some customers have reported wait times upwards of three months or more before orders ship), and recent deep discounts on its products would seem to support the management board’s note about “miscalculated” merchandise stock. It’s hard to guess what’ll happen to Fanatec next, but the company’s absence would surely leave a massive gap in the sim racing scene.
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