Securing financial stability in a tough market

Securing financial stability in a tough market

The fact that a major player like Accell Group has been struggling under a burden of heavy debts gives a clear indication of the difficulties in the market. The manufacturer saw its turnover decline 10% from €1.43 billion in 2022 to €1.3 billion in 2023 as sales declined across major European markets and inventory levels remained high.

At the same time, the industry has witnessed a flurry of insolvencies including Austrian bicycle manufacturer WSF, German LEV maker Onomotion and Austrian bike brand Simplon. On the flip side, other key players are continuing to invest, or in some cases disinvest, to secure their financial health heading into the next year. However, for some, “survive to 25” could be a very real challenge.

Highlights in this latest online magazine (Issue 34 | October 2024) include:

  • ‘Another boom period for the industry is coming’
  • Industry players restructuring for better financial foothold
  • Why our drive system failed in thriving market

Rocky Mountain Bicycles expects to continue its operations in full during its self-initiated restructuring process. – Photo Rocky Mountain Bicycles

Rocky Mountain Bicycles the latest brand to apply for Chapter 11...

QUEBEC, Canada - Long standing bicycle manufacturer Rocky Mountain Bicycles has filed for Chapter 11 status to restructure the company. The company will continue its operations in full during its self-initiated restructuring process under the Companies' Creditors Arrangement Act (CCAA), reports the Canadian new service Cision's Newswire.

At home in Wels, Austria: the two-wheeler giant Pierer Mobility AG. – Photo Pierer Mobility AG

Troubled Pierer Mobility hires investment bank to oversee...

WELS, Austria - After motorcycle company KTM AG had to file an application for restructuring proceedings with self-administration at the end of November, its parent company Pierer Mobility AG commissioned Citigroup Global Markets Europe AG on 17 December to reorganise the ownership structure.

Ernst Brust specifically mentioned the e-bikes of the Chinese brand Fiido. Their design easily allows to change the motor support limit from 25 km/h to 50 km/h. – Photo Fiido

Will the e-bike become a victim of its own success?

AMSTERDAM, the Netherlands - The import statistics of the European Union clearly indicate that China regained its leading position as e-bike supplier for Europe's market. At the same time, the market is drowned with cheap and non-compliant China made e-bikes whose sellers shamelessly advertise the presence of a throttle and how to circumvent the maximum support of 25 km/h. How should the industry respond to these market developments?

The reorganisation of the Pon owned GT Bicycles resulted in much speculation regarding the future of the US brand. – Photo GT Bicycles

Pon reorganises GT Bicycles: 'Laying a solid foundation for GT's next...

ALISO VIEJO, USA - The reorganisation of the Pon owned brand GT Bicycles has resulted in much speculation regarding the future of the brand. Some even assumed that GT Bicycles would shut down once all inventory is sold. According to a Pon spokesperson, the decision to restructure this subsidiary was taken, "to lay a solid foundation for its next chapter."