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Dutch e-bike maker VanMoof bankrupt, administrators may sell assets
Global Banking & Finance Review®
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AMSTERDAM (Reuters) -Dutch e-bike maker VanMoof has been declared bankrupt and curators are researching whether it can sell assets and restructure, the company said on Tuesday.
AMSTERDAM (Reuters) -Dutch e-bike maker VanMoof has been declared bankrupt and curators are researching whether it can sell assets and restructure, the company said on Tuesday.
VanMoof, which raised 100 million euros ($112.56 million) to expand internationally as sales boomed during the COVID-19 pandemic, had filed for protection from creditors last week.
The company said in a statement that a judge at the Amsterdam District Court had declared Dutch entities VanMoof Global Holding BV, VanMoof BV and Van Moof Global Support BV bankrupt on July 17.
Two administrators named to oversee the company “are continuing to assess the situation at VanMoof and are investigating the possibility” of a restructuring that would allow the company to continue operating, including asset sales.
The statement noted that the company’s international subsidiaries are not “in insolvency proceedings” and it would not comment further.
Dutch broadcaster NOS reported that the company, which sold bikes for more than 2,000 euros ($2,250) each, suffered from high costs to maintain and repair bikes while they were under warranty.
NOS cited an internal email sent to employees by the company’s founders, brothers Taco and Ties Carlier, thanking them.
“We are sad but above all we feel proud of what we accomplished,” the note said.
VanMoof bikes feature a sleek, simplistic design with the battery built into the frame, and have become commonplace on the streets of Amsterdam, where the company was founded in 2009.
It has around 700 employees.
($1 = 0.8890 euros)
(Reporting by Toby Sterling; Editing by Muralikumar Anantharaman and Louise Heavens)
Bankruptcy is a legal process through which individuals or businesses that cannot repay their debts can seek relief from some or all of their obligations. It allows for the reorganization of debts or liquidation of assets.
An asset sale involves selling a company's assets to pay off debts or for other financial reasons. This can include physical assets like equipment or intangible assets like patents.
Restructuring refers to the process of reorganizing a company's structure, operations, or finances to improve efficiency and profitability, often in response to financial distress.
International subsidiaries are branches or companies owned by a parent company that operate in foreign countries. They help businesses expand their market reach and operations globally.
The e-bike market refers to the industry that produces and sells electric bicycles, which are equipped with an electric motor to assist with pedaling, making cycling easier and more accessible.
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