German battery manufacturer Varta has filed for insolvency proceedings, according to a Reuters report. The company announced on Wednesday that it has applied for insolvency proceedings for Varta AG and its operating subsidiary Varta Microbattery GmbH.

This move comes after Varta recently announced a new strategy to overcome its financial difficulties. The company had been struggling with high debt levels and a significant decline in the value of its shares. In 2023, Varta reported a net loss and had warned of potential liquidity issues.

The insolvency filing is intended to allow the company to restructure its finances under court supervision. Varta is known for its small batteries used in hearing aids and other consumer electronics, as well as its larger lithium-ion batteries for electric vehicles and energy storage. The company’s financial troubles have been a significant concern for investors and employees alike.