A German court has announced the bankruptcy of the German office of the Chinese electrical startup Byton.
Byton is one of the most famous electric car startups to emerge in China in recent years and has established a subsidiary in Germany. However, the company is going through a difficult period and in April laid off half of its US employees. According to the Byton GmbH representative in Germany, employees at the Ismaning, Germany, were also not paid their salaries.
In addition, local media reported in January that the Byton GmbH building in Ismaning had been empty for several months as the lease had been terminated. Former BMW manager Daniel Kirchert left his position as Managing Director and CEO of Byton GmbH in July 2020, and the Chinese startup was unable to replace him, which meant that no one was in charge of the company’s German office.
Fast forward to April 20 – the Munich District Court has ordered the introduction of interim administration in the Byton GmbH insolvency case. Daniel Kirchert was named the debtor, and Munich lawyer Michael Bauer will be acting as interim bankruptcy trustee.
It is reported that Kirchert insisted on the possible bankruptcy of Byton GmbH in 2020, but management in China did not like this idea, which prompted Kirchert to leave the company.
The news comes just three months after it was announced that Byton had partnered with iPhone maker Foxconn and the Nanjing Development Zone in China to begin production of the new M-Byte in the first quarter of 2022.