Sim racing brand Fanatec has filed for bankruptcy

The ghost month hasn’t even started yet, but it looks like it’s bankruptcy season for Germany. Following insolvency filings for aftermarket brands Recaro Automotive GmbH and BBS, this time it’s a sim racing equipment brand facing an uncertain future.

Fanatec’s parent company Endor AG has filed for insolvency in a German court, following failed buyout negotiations and debt restructuring with PC component brand Corsair. A further open-ended process to rescue the company is now being initiated as part of the insolvency proceedings, with the aim of reorganizing the company and securing the Landshut site and jobs.

For the unfamiliar, Fanatec is a leading brand that makes direct drive wheels, load cell pedals, and shifters for PlayStation, Xbox, and PC-based racing simulators. It was even the official hardware partner for several different esports series like the F1 Esports Pro Series, the eSport WRC Championship, Gran Turismo World Series, and the SRO E-sport GT Series.

Fanatec was one of the brands that grew during the pandemic as more isolated customers turned to sim racing for recreation and competition purposes. But once peak demand began to wane, Fanatec’s parent company racked up some serious debts over the previous years, owing up to around EUR 95 million against its annual sales of 100 million euros.

While insolvency proceedings are in place, Endor AG says sales, warranty, and repair services for Fanatec products should continue, along with driver and software updates. For now, it’s still hard to guess what will happen to Fanatec, but the brand’s absence in the sim racing scene will definitely leave a big void.