BBS GmbH of Germany, one of the world's largest wheel manufacturers, has filed for bankruptcy, according to a statement posted on the company's website Monday.

Bankruptcy was a "necessary step to prevent an imminent insolvency within the coming months due to the sudden omission of confirmed payments," the company said in the statement.

BBS cited the "tough market environment" caused by the ongoing global coronavirus pandemic, and the accompanying shutdown of its two factories, as the main factors behind the bankruptcy decision.

Prior to filing for bankruptcy, BBS said it had initiated "an extensive turnaround strategy for the whole company," which it still plans to follow. Two administrators have been appointed to oversee bankruptcy proceedings, one of which played a part in restructuring the company when it declared bankruptcy in 2011.

BBS was founded in 1970 by two amateur racers looking for advantages on the track, according to a history on the company's website. Looking to reduce unsprung weight, they developed a three-piece wheel that they later decided to sell commercially.

Today, the BBS name is a major player in the auto industry, supplying wheels to both OEMs and the aftermarket. The name is also a mainstay of motorsports.

It's important to note that the bankruptcy doesn't affect the separate entities BBS of America and BBS Japan. The latter is responsible for all forgings for forged BBS wheels designed and built for road cars and racing.

Correction: An earlier version of this article incorrectly stated that BBS GmbH was responsible for BBS forged wheels used in motorsports.