The Hamburg-based car rental company Starcar GmbH Kraftfahrzeugvermietung has filed for insolvency, marking one of the largest corporate collapses in Germany’s mobility sector this year. The District Court of Hamburg confirmed that preliminary insolvency proceedings have been opened and appointed lawyer Christoph Morgen as provisional administrator.
According to both Starcar and Morgen, the company’s rental operations will continue across all locations while the restructuring process unfolds. Customers can still rent vehicles as usual, and employees’ salaries and wages are secured through an advance insolvency payment fund (Insolvenzgeldvorfinanzierung).
The company said roughly 1,100 employees have already been informed about the situation.
Rising revenue, collapsing finances
The insolvency comes as a surprise: just two months ago, Starcar CEO Jens E. Hilgerloh announced record revenues of €510.65 million for the previous year — up from €341.73 million in 2022. Yet behind the strong sales figures, the company was struggling with mounting debt and financing pressures.
According to reports by Wirtschaftswoche, Starcar had taken on around €240 million in loans from various banks in 2022, with maturities of three years.
In recent weeks, management had been negotiating extensions with lenders to avoid insolvency, but those talks collapsed due to the company’s weak financial position.
Sources familiar with the situation say liquidity problems intensified over the summer as interest rates rose and fleet costs increased.
Administrator: operations to continue
Insolvency administrator Christoph Morgen, known for his experience in restructuring transport-sector companies, said his priority was to stabilize operations and preserve jobs while exploring strategic options for the company’s future.
“We will continue the business at all locations,” Morgen confirmed in a statement, adding that customers should not be affected in the short term.
Starcar’s management also expressed optimism that the proceedings could result in a restructuring plan rather than a full liquidation.
One of Germany’s largest car rental providers
Founded in 1987 in Hamburg, Starcar grew into one of Germany’s largest car rental firms, ranking alongside Sixt, Europcar, and Hertz.
The company operates more than 100 branches nationwide and cooperates with over 500 partner stations.
Industry analysts view the insolvency as part of a wider trend in Germany’s car rental and mobility sector, where rising fleet financing costs, insurance premiums, and maintenance expenses have squeezed margins despite steady customer demand.
Whether Starcar can be saved will depend on attracting new investors or strategic partners within the coming months.
