Cherry Faces Deep Financial Strain, Weighs Selling Major Division
German component maker Cherry disclosed that its debts now exceed its equity and that management is evaluating the sale of either the Peripherals division or the Digital Health and Solutions division to stabilise the business. The company has already ended switch production at its Auerbach plant, outsourced manufacturing to partners in China and Slovakia, sold its Active Key hygiene peripherals arm for about €21 million and secured €23 million in additional financing, developments that could reshape supply and ownership in the mechanical keyboard community.
On November 29, 2025, Cherry revealed that its liabilities now exceed its equity and that the board is considering the sale of a major division to shore up finances. Management said it is evaluating the sale of the Peripherals division, which houses keyboards and mice, or the Digital Health and Solutions division. The company noted that its market valuation sits below one euro per share, and that merger or acquisition options appear to be the only realistic route to strengthen the group under current conditions.
The disclosure confirmed several operational shifts already in motion. Cherry ended switch production at its long running Auerbach plant and will outsource manufacturing to partners in China and Slovakia. The company clarified that the Cherry MX component switch business is separate from the Peripherals division, a distinction that matters for suppliers and builders watching where switch production and intellectual property may land. Cherry also completed the sale of its Active Key hygiene peripherals arm for about €21 million and secured €23 million in extended financing as part of near term measures.
For the mechanical keyboard community these developments carry immediate practical implications. Supply lines for Cherry peripherals may change depending on whether the Peripherals division is sold, and outsourcing to external partners can introduce shifts in quality control, lead times and inventory strategies. Verify your switch supply and consider stocking critical spares if you depend on specific Cherry switch types for group buys, builds or repair work. Watch for announcements on any buyer or strategic partner, because ownership changes can affect warranties, parts availability and long term sourcing.
This situation also underscores broader industry trends toward consolidation and outsourcing in component manufacturing. Expect heightened attention from vendors, aftermarket producers and keyboard designers in the coming weeks as Cherry pursues strategic options. Stay alert for formal filings and company updates that will clarify which division, if any, will be sold and how production and licensing of Cherry MX technology will be managed going forward.
Know something we missed? Have a correction or additional information?
Submit a Tip
