The European bicycle industry is experiencing a wave of insolvencies and restructuring efforts. Economic pressures, changing consumer habits, and shifting market dynamics are challenging even the most established brands. The Show Daily examined the latest developments.
Simplon: Financial Struggles and Prospects for Recovery
Founded 1961 in Hard, Austria, Simplon is a prominent manufacturer of high-quality bicycles, including road, mountain, and e-bikes. In September 2024, the company filed for insolvency, reporting liabilities of approximately €44.5 million, with the majority owed to banks. The company attributed its financial difficulties to intense market competition, significant price pressures, and a notable decline in bicycle sales—around 30% since spring 2024—due to factors such as a delayed season start and surplus inventory among dealers and manufacturers.
Despite these challenges, there is optimism about Simplon’s future. In December 2024, Austrian investment firm SOL Capital Management announced plans to acquire Simplon, pledging financial support and continuity of operations in Austria. Creditors approved a recovery plan offering 30% repayment over two years. Pending regulatory approvals, Christoph Mannel, currently CCO of Accell Group, is set to lead the company’s restructuring as CEO, aiming to secure its future.
Flyer: Swiss E-Bike Pioneer Shifts Production Abroad
Established in 1995, Flyer is a leading name in the e-bike industry, renowned for its innovation and commitment to Swiss manufacturing. However, in October 2024, the company announced plans to cease production at its Huttwil facility, citing challenging market conditions and a significant decline in demand. This decision affects approximately 150 of the 170 employees, marking the second major restructuring in two years. The company had previously reduced its workforce by a quarter in 2023 due to similar market pressures.
The company plans to relocate production to Germany, aiming to reduce costs and adapt to the evolving market landscape. The closure of the Huttwil plant marks the end of an era for Flyer, which had long emphasized its Swiss roots and local production. The company has initiated a consultation process with employees and local authorities to manage the transition and provide support to those affected.
Advanced: German E-Bike Manufacturer Files for Insolvency
Established in 2011, Advanced Bikes is a German e-bike manufacturer known for its commitment to sustainability and production within Germany. The company gained recognition for its innovative use of recyclable materials and its emphasis on high-quality, locally assembled bicycles. In November 2024, Advanced Bikes filed for insolvency, citing significant market challenges, including overstocked inventories and a substantial decline in sales. The company’s recent investments in a new assembly plant in Rieste and a modern headquarters in Offenbach could no longer be sustained financially due to the downturn.
Despite these setbacks, the management team remains optimistic about restructuring. They plan to develop a recovery strategy in collaboration with the appointed insolvency administrator, aiming to preserve the brand’s focus on quality ‘Made in Germany’ and its dedicated workforce. Operations are expected to continue during the insolvency proceedings, with the goal of stabilizing the company’s financial situation.
Onomotion: Urban Mobility Vision in Crisis
Berlin-based Onomotion was founded in 2016 with a mission to revolutionize urban logistics through innovative e-cargo bikes. The company’s flagship product, the Onomotion Pod, combined modular design with advanced electric propulsion, aiming to provide a sustainable alternative for last-mile deliveries in congested cities. Despite its promise, Onomotion filed for insolvency in late 2024, citing an inability to achieve profitability at scale. The company’s challenges highlight the difficulties urban mobility startups face in navigating complex supply chains and fierce competition from traditional logistics solutions.
In December 2024, Emoving GmbH, part of the Tri Star Group, acquired the company, ensuring the continuation of the brand and retaining all employees. The new ownership plans to expand Onomotion’s product offerings and enter new markets.
Pierer Mobility: Financial Turmoil and Restructuring Efforts
Pierer Mobility AG, the parent company of KTM AG, Europe’s largest motorcycle manufacturer (not to be confused with the well-known bicycle producer KTM Fahrrad), is facing significant financial challenges. In late November 2024, KTM AG filed for self-administered insolvency in Austria, citing a financing gap in the high three-digit million EUR range. The company plans to restructure within 90 days to stabilize operations.
The insolvency affects subsidiaries KTM Components GmbH and KTM Forschungs und Entwicklungs GmbH, potentially impacting approximately 6,000 employees. Production is expected to halt temporarily, with a planned restart in March 2025. In response to the crisis, Pierer Mobility has engaged Citigroup Global Markets Europe AG to reorganize its ownership structure, aiming to attract new strategic and financial investors. Despite these challenges, the company intends to continue its MotoGP program, viewing it as a flagship initiative.
It’s important to note that KTM AG is distinct from KTM Fahrrad GmbH, the bicycle manufacturer, which operates independently and is not affected by Pierer Mobility’s financial issues.