Car rental company on the verge of collapse – search for investors failed

1,100 employees affected

Car rental company Starcar is facing bankruptcy after bankruptcy

Football fans know Starcar as a sponsor of the Bundesliga club FC. St Pauli and Mainz 05. But the company probably no longer has a future – despite increasing sales.

The insolvent car rental company Starcar is apparently on the brink of closure after the search for investors failed. As the “Manager-Magazin” reports, the provisional insolvency administrator Christoph Morgen has informed the approximately 1,100 employees that there is “no interested party in taking over the business operations as a whole” following Starcar’s insolvency.

After Starcar filed for bankruptcy on October 24, insolvency administrator Morgen tried to find an investor for the entire company. Well-known consulting companies such as Rothschild, PwC, Freshfields, Finkenhof and Noerr were involved. Despite these efforts, the search was unsuccessful. The insolvency administrator has now “taken the necessary precautionary steps to significantly restrict operations from January 2026”.

The Starcar Group was able to increase its sales from around 341 million euros in 2023 to more than 510 million euros in 2024. Earnings before interest, taxes, depreciation and amortization (Ebitda) also grew from 24.4 to almost 26.3 million euros. Nevertheless, the company ran into financial difficulties and ultimately went bankrupt. According to industry circles, Starcar had speculated on the residual values ​​of its vehicles.

The insolvent car rental company was unable to sell many vehicles on the used car market as planned, but had to continue financing them, which led to skyrocketing costs.

Ultimately, the banks’ lost trust was also decisive for the insolvency. In 2022, the group of companies secured a syndicated loan of up to 240 million euros for three years. However, an extension of this loan, which was necessary for survival, did not materialize.

Shortly after Star Car GmbH Kraftfahrzeugvermietung filed for bankruptcy, other Starcar Group companies also filed for bankruptcy. The insolvent company is known, among other things, as a sponsor of the Bundesliga soccer clubs FC St. Pauli and FSV Mainz 05.