Bicycle industry in crisis: Sympatex files for insolvency - what's next?
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The year 2025 did not bring any economic relief for the bike industry either. On the contrary. The past financial year presented more and more companies with enormous challenges. Financial reserves are dwindling. Surprising, you might think. After all, the coronavirus years triggered a veritable bike boom. Sales figures reached a record high for 2022 and demand initially remained high. However, manufacturers repeatedly complained of difficulties with supply bottlenecks and rising prices.
To make matters worse, delayed goods from orders placed in 2022 and 2023 flooded the already weakening market. As a result, dealers' and manufacturers' warehouses are full like never before, but hardly anything is being sold in the off-season and the current consumer slump. Sellers are outbidding each other with discounts, while at the same time more and more bike companies are having to file for insolvency. You can find a comprehensive report on the state of the bicycle industry in 2024 here
Sympatex files for insolvency (27.01.2026)
Sympatex Technologies GmbH, a leading developer and manufacturer of functional membranes for sports and outdoor clothing, filed for insolvency on 22 January 2026 due to its inability to pay. The Munich Local Court granted the application and ordered provisional insolvency administration on 26 January. Lawyer Axel W. Bierbach from the Munich-based law firm Müller-Heydenreich Bierbach & Kollegen was appointed provisional insolvency administrator. The parent company Smart Solutions Holding GmbH has also filed for insolvency. Despite the financial difficulties, business operations will continue. The wages and salaries of the approximately 70 employees are secured until the end of March 2026 through insolvency benefits from the Federal Employment Agency.
According to the company, the Filing for insolvency has become necessary due to ongoing economic burdenswhich ultimately led to insolvency. Kim Scholze, sole Managing Director of Sympatex Technologies GmbH since the end of September 2025, explains the situation: "The application is the result of difficult economic conditions that could no longer be offset by the operating business alone." The insolvency proceedings are intended to create the necessary framework to reorganise the company in a structured restructuring process.
Canyon plans to cut 20% of jobs (20.01.2026)
Canyon is planning to respond to the crisis in the bicycle industry with mass redundancies. The Koblenz-based bike manufacturer has announced plans to cut up to 320 of a total of 1600 jobs to reduce costs. In addition to the job cuts in Koblenz, there will also be redundancies at the Amsterdam site. Other branches are not affected by the cuts.
Canyon founder and Executive Chairman Roman Arnold is particularly pained by this step: "Canyon is a community that has grown together, united by a passion for cycling. It is therefore particularly painful that we have to part ways with valued colleagues," Arnold is quoted as saying in a press release.
The Meanwhile, IG Metall wants to critically examine the planned large-scale job cutsIG Metall Koblenz takes note of Canyon's plans to cut jobs. We are aware that the industry has overcapacity and that there is a certain amount of pressure to adapt. We are not yet convinced that the planned reduction in this amount is necessary," Ali Yener, First Authorised Representative of IG Metall Koblenz, is quoted as saying in a press release dated 21 January 2026.
The future of Syntace: Investors provide a new perspective (12.01.2026)
After turbulent weeks and months, Syntace GmbH could slowly return to normality. According to the insolvency administrator Baker Tilly, the lawyer Dr Dejan Marković has succeeded in finding investors who are able and willing to continue the business operations of the wheel specialist based in Tacherting, Bavaria. According to reports, the investors are entrepreneurs from Taiwan and Bangladesh who do not wish to be named. They are already active as component manufacturers in the bicycle industry and have the corresponding production capacities. Syntace filed for insolvency in October 2025.
Shortly before Christmas, SL International GmbH was founded specifically for the takeover (S stands for Syntace, L for Liteville), although its future role does not yet appear to be entirely clear. According to the insolvency administrator, the company acquired the intangible assets and movable fixed assets of Syntace with the opening of insolvency proceedings on 30 December 2025. The future of the Syntace and Liteville brands is therefore considered secure. The founder and Head of Technology, Jochen "Jo" Klieber, will continue to provide technical support.
Syntace GmbH had previously filed for the opening of insolvency proceedings at the Traunstein Local Court on 14 October 2025. The company, founded by Jo Klieber, was acquired as part of Pierer Mobility AG in the course of the Insolvency at the motorbike brand KTM got into difficulties. Baker Tilly lawyer Dr Dejan Marković was appointed provisional insolvency administrator. Business operations continued uninterrupted throughout the proceedings: the online shop, dealer deliveries and spare parts supply continued seamlessly.
YT Industries USA closes down (03.11.25)
At the end of September, it became clear that massive changes were imminent at YT Industries. After the direct mail order company had to file for insolvency in July and initiated a debtor-in-possession reorganisation, two months later there was bad news: Talks with potential investors failed and the majority of employees were made redundant. However, operations in the USA were to continue unchanged. It is now clear that the US subsidiary is to cease operations. The reason: it was not possible to reach an agreement with YT Industries Germany. The Americans describe this in an emotional Instagram post.
The statement from the US subsidiary in full:
Dear YT Family,
After eight incredible years of serving riders across North America, we want to share some difficult news. Despite our best efforts, YT Industries USA and YT Industries Germany have not been able to reach an agreement on future operations. As a result, YT Industries USA will be closing its business. This is not a decision we made lightly. From day one, our mission has been to bring the YT spirit- performance, creativity, and community-to riders all over North America. Together, we've built something special: a passionate community of riders, racers, and fans who share the same love for good times on two wheels.
We are deeply grateful to everyone who has supported YT USA-our customers, our staff, our riders, our partners and our counterparts across the globe. You've helped make these years unforgettable, and we're proud of what we achieved together.
From all of us at YT Industries USA: thank you for your trust, your energy, and your support. It has been an honour to ride with you. - YT Industries USA team
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It is not yet clear whether this is the final straw for YT Industries. Most recently, company founder Markus Flossmann announced his intention to buy back the company himself and continue to operate the brand. There is no new information on this.
BMZ files for insolvency under self-administration (29.10.25)
In a press release, the BMZ Group has announced that it has filed for insolvency in self-administration for BMZ Germany GmbH. The reason for this is the loss of a major customer, which is said to have led to a liquidity gap. Specifically, it states: "The background is an acute liquidity crisis and need for reorganisation due to the loss of a major customer in the Energy Storage segment and the resulting legal disputes and cost burdens." It is also reported that BMZ Holding GmbH has also been affected by a letter of comfort and has therefore filed for insolvency.
The battery manufacturer BMZ builds batteries for e-bikes, among other things. Its customers in the MTB sector include Bulls, Rotwild and Norco. In 2023, BMZ acquired the Austrian bike manufacturer Nox Cycles. In their e-bikes, like the Nox Amplifier P2Some of the bikes are also fitted with BMZ batteries. And with the powerful RS motor with 112 Newton metres, the manufacturer even has its own e-bike drive in its range.
Nevertheless, the company is optimistic about the future. The focus is now on a strategic realignment as part of the reorganisation. The focus should be on core technological competences, cost savings and targeted growth initiatives. "Demand for core products is stable and the market trend towards high-performance battery systems remains unbroken. BMZ has technological expertise and focuses on innovation, quality and customised solutions "Made in Europe", the press release continues.
Jobrad plans job cuts (2.10.2025)
As reported by SWR, the leasing company Jobrad is planning to cut jobs. The company confirmed to the radio station that it had already begun talks with the works council. This could be an indication that a larger number of jobs could be involved. Jobrad is based in Freiburg and employs around 850 people, according to the company. The Freiburg-based company now also appears to be affected by the ongoing slump in the bike industry. "After years of boom, the bike industry is currently experiencing a phase of consolidation," says Florian Baur, Managing Director of Jobrad, in an interview with SWR. "Our business model is robust and fit for the future, but we need to automate processes more, review workflows and align them in a more focussed way," says Baur about the upcoming changes.
YT founder Flossmann wants to buy back company (29.9.2025)
Following its insolvency under self-administration, a surprising development is emerging for YT Industries: Company founder Markus Flossmann wants to buy the company back. After a private equity investor cancelled the financing, YT had to file for insolvency in July 2025. The creditors' committee has now approved the buyback offer from the founder, who is investing personal capital to secure customer orders. Flossmann described offers from other investors as an "absolute joke". For the time being, operations at YT have been reduced to a minimum and many employees have been made redundant.
Accell optimises production sites (27.08.2025)
Accell has announced that it will transform its production and foundation site in Heerenveen, the Netherlands, as part of its transformation programme. The site will focus on strategic functions such as design, engineering and support. Manufacturing will be discontinued by the end of the first quarter of 2026 and relocated to existing production facilities. This decision is part of a comprehensive plan to increase efficiency and simplify production processes.
In future, production will be centralised in Hungary, supported by final assembly in Dijon, France. This follows an earlier decision to sell the plant in Turkey. The closure in Heerenveen will affect around 160 jobs, which is why a social plan will come into effect to support the affected employees. The changeover is due to begin in September, with Heerenveen currently accounting for around 20% of Accell's total production. Following the recapitalisation, which was completed earlier this year, the company has reorganised activities in Germany, the Netherlands and the UK, as well as in manufacturing, sales and central functions. Inventory levels have been significantly reduced and increased efficiencies have reduced the number of warehouse locations from 85 to 28, with the aim of reducing to five in the coming years.
With the reorganisation, Accell hopes to achieve efficiency gains and strengthen its innovative power. Accell's CEO, Jonas Nilsson, emphasises that focusing on fewer sites under the One Accell model will enable the company to improve the quality and consistency of its products while reducing operating costs.
The Accell Group brings together numerous brands such as Haibike, Winora, Ghost and Lapierre as well as Batavus, Koga, Raleigh, Sparta, Babboe and Carqon.
Insolvency of YT Industries and 7Anna (NS Bikes, Rondo) (25/08/2025)
After the cult mail order company YT Industries had initiated reorganisation proceedings in self-administration (all details here)now it's the next one. The Polish 7Anna Group, better known for its dirt and gravity brand NS Bikes (here in the test) and Rondo (Gravel) Octane One and Creme Cycles (Urban) have filed for insolvency at the district court in Gdansk. In Germany, the brands were distributed by Sports Nut from Tübingen.
In an official statement, Szymon Koblynski from 7Anna cites a whole range of reasons for the financial difficulties, which many other brands are also currently struggling with. Delivery problems during Corona and distribution problems in the aftermath, and both the most important supplier, Sprick, and the largest distributor for Western Europe went bankrupt in quick succession. Possible, that Koblynski is alluding to the bankruptcy of the Signa Group in November 2023. 7Anna is at pains to emphasise that business will continue as normal during the restructuring and that the guarantee and service will be maintained for the time being.
Sports Nut, the German sales partner of the 7Anna Group, has now also spoken out and announced that the long-standing collaboration has already been terminated as of 31 July 2025. SAZ quotes the Tübingen-based company as saying that there had already been signs of 7Anna's difficulties in the preceding months. As a result, Sports Nut no longer placed a pre-order for 2026 and cancelled the collaboration due to the ongoing delivery problems and lack of future prospects.
Pierer exit from bicycle business faster than planned (06/08/2025)
The Pierer Mobility Group is pushing ahead with its exit from the bicycle business faster than originally planned. While the company still sold over 50,000 bikes in the first half of 2025, the stock of the Husqvarna and Gasgas brands is to be completely sold off by the end of the year. By the end of 2024 we reported on the curious news that the Pierer-owned company KTM was giving away thousands of e-bikes to its employeesto save storage costs.
As the company announced as part of the publication of its preliminary business results for the first half of 2025, the so-called "wind-down" of the bicycle business segment is progressing faster than expected. In the first six months of the year, the Austrian group still sold 50,107 bicycles and electric bikes. The company now anticipates that the stocks of the Husqvarna and Gasgas brands will be completely sold out by the end of 2025. Despite the withdrawal, Pierer Mobility assures that all warranty, service and spare parts deliveries will continue in accordance with the statutory warranty requirements. Customers who already own a bike of the affected brands will therefore continue to receive support.
The Felt bicycle brand remains unaffected by the exit plans. There is currently no word on plans for the Syntace and Liteville brands, which also belong to the Pierer Group. Following the successful completion of the reorganisation process, Pierer Mobility is once again placing its strategic focus on its core business with motorbikes.
According to the company announcement, the full half-year financial report 2025 will be published on 28 August 2025 and is expected to contain further details on the strategic realignment and the financial impact of the accelerated withdrawal from the bicycle business.
UVEX sells majority stake to US investor (03.07.2025)
The Uvex Groupa long-established family business from Fürth in Franconia, is positioning itself for the future with a new majority shareholder. The US private equity investor Warburg Pincus is acquiring a majority stake in the specialist for protective and safety equipment. The previous shareholder families Winter and Grau will retain a minority stake and want to continue to play an active role in shaping the company's development.
Strategic focus on global growth
With Warburg Pincus' investment, Uvex is pursuing ambitious expansion plans. In addition to accelerating international growth, the focus is on expanding the premium product range and tapping into new business areas. Strategic acquisitions are also part of the future expansion strategy, according to the company. The transaction, which marks a significant milestone in the almost 100-year company history is still subject to regulatory approvals.
Who is the investor Warburg Pincus?
Warburg Pincus, founded in 1966, has extensive experience in supporting high-growth companies. The investor currently manages assets totalling over 87 billion US dollars and is known worldwide for its investments in expanding companies.
What does the Uvex Group do?
The Uvex Group unites a number of well-known brands under one roof, including Uvex Safety, Alpina, Hiplok and Filtral. With around 3,000 employees worldwide - 60 per cent of whom work in Germany - the company has established itself as a major player in the field of sports equipment and occupational safety. The investment by Warburg Pincus marks a far-reaching change in the company's structure.
Canyon: Loss in value of over 40 % (06/06/2025)
As reported by numerous business news media, the German direct mail order company Canyon is apparently also struggling with poor figures. The investment company Groupe Bruxelles Lambert (GBL), the majority owner of Canyon, has made a significant correction to the company's value due to the ongoing difficult market situation.
In its latest annual report, GBL valued its 49.8% majority stake in Canyon at 261 million euros. In the previous year, the value after the first quarter was 454 million euros. This means a loss of around 42.5% or 192 million euros, which GBL now has to write off.
GBL cites the persistently difficult market situation with high stock levels and the subsequent dramatic discount battles as reasons, as well as quality defects in individual e-mountainbikes. Meanwhile, turnover fell only slightly last year by -1% to 172 million euros.
The annual report states: "Sales declined slightly due to a challenging market environment with oversupply in certain categories and aggressive discounting, particularly for electric and non-electric mountain and city bikes. Growth in the road and gravel segments remains robust and demonstrates the strength of the brand."
Even if the financial situation in parts of the bicycle industry currently appears to be very difficult: Canyon remains confident and is even setting up a store in Munich.
BMC Group initiates job cuts and restructuring (21.05.2025)
The BMC Group today announced far-reaching measures to secure its competitiveness. The Swiss manufacturer had already taken initial steps last year to adjust supplier orders and reduce inventories. In view of the persistently challenging market situation, the company now sees a need for further action to ensure long-term economic stability. Part of the planned measures involves reducing the workforce by around 40 jobs worldwide. A consultation process has been initiated for the potentially affected employees in Switzerland.
Strategic realignment of the product portfolio
As part of its strategic realignment, the BMC Group plans to concentrate on its core segments in future. The focus will be on racing bikes and gravel bikes. The range will be supplemented by models from the triathlon, MTB cross-country, e-road and track segments. No new product launches are planned for the Scor and Adicta Lab brands for the time being. Although these brands are to be continued, the focus here will initially be on customer support and selling the existing range. The company states that it is constantly reviewing the further development of these brands.
Changes to the Board of Directors
Parallel to the structural adjustments, there will also be personnel changes on the Board of Directors of the BMC Group. The previous Chairman of the Board of Directors, Erwin Steinmann, and Herbert Bächler are stepping down due to age. Both have been active in leading bodies of the company for over a decade. Alessandro Celli, who has already been a member of the Board of Directors for five years, will take over as Chairman. This new appointment marks a further step in the reorganisation of the company.
Rocky Mountain under new management: Canadian investors take over (15.5.2025)
The Canadian bike manufacturer Rocky Mountain has been taken over by a group of Canadian investors. The new owners want to further develop the brand while remaining true to its roots. Research and development will remain in North Vancouver.
KTM insolvency: No more bikes from Husqvarna and GasGas? (05.02.2025)
In December the spectacular insolvency of KTM Motorrad (not to be confused with KTM Fahrrad) hit the headlines. After major job cuts in the parent company Pierer, the next drastic measure now follows. As the Austrian news portal heute.at reports, the Pierer New Mobility Group, which produces all of the Group's bicycles, is in debt to KTM AG to the tune of over 370 million euros. The consequence: Pierer's New Mobility division is to be significantly reduced in 2025.
We have enquired with Pierer. One thing is certain: in addition to the German site in Schweinfurt, Pierer New Mobility is also closing its sites in South Africa and the UK. With reference to a recent report by insolvency administrator Peter Vogl, various Austrian media are even reporting that Pierer New Mobility is to be completely shut down in 2025. Pierer has not confirmed this to us. They are currently exploring "all options", according to the official statement. However, the production of GasGas and Husqvarna will be paused for the time being, and stocks will continue to be sold off. "Day-to-day business will continue unchanged for end customers," the company promises, expressly including warranties and guarantees.
Flyer is now building in Germany (27/01/2025)
Two months ago, the final closure of the Flyer assembly plant in Huttwil, Switzerland, was announced. However, Flyer e-bikes are apparently to be produced at the Kettler Alu-Rad plant as early as February, as reported by the industry magazine SAZ. The crisis in the bicycle industry led to this last November, that the Swiss e-bike pioneer Flyer Bikes had to completely cease assembly in Huttwil and lay off the majority of its employees. It is now clear that the new production facility for Flyer electric bikes will be the Kettler Alu-Rad assembly plant in St. Ingbert, which can provide the necessary capacity. According to SAZ, a small team of employees will remain in Huttwil to look after the Swiss market.
Rocky Mountain initiates consolidation process
The reasons are the same as for many companies: Rising costs, supply bottlenecks, lack of demand, falling prices and margins are causing Rocky Mountain problems. And yet the cult manufacturer's financial difficulties are causing real shock throughout the industry. The facts: Rocky Mountain is not yet insolvent in the true sense of the word. Instead, the manufacturer has resorted to the CCAA procedure, which enables ailing companies to maintain their business operations for the time being with a consolidation plan. It is not yet known exactly what the consolidation plan will look like and whether and how many employees and professional athletes the company will have to lay off as a result. Rocky Mountain will continue to be led by CEO and company owner Raymond Dutil.
Hibike files for insolvency (08.01.2025)
The mail order company for bikes and accessories, which operates from Kronberg im Taunus, has filed for insolvency proceedings. The company announced this in a press release. Shortly before Christmas 2024, the competent court is said to have ordered the insolvency administration of the company. Alongside larger shops such as bike-components, r2-bike and bike24, Hibike is one of the medium-sized mail order companies in Germany that is also likely to be suffering from the current slump in sales.
Pierer gives away 11,000 Husqvarna e-bikes
The insolvency of the Austrian motorbike manufacturer KTM would actually have little relevance for the bike industry. This is because the KTM bicycle has long been an independent company and has nothing to do with the motorbike company. The two companies are not even part of the same corporate group. Curious: In order to consolidate its finances, KTM Motorrad is resorting to unconventional measures. To compensate for a loss of salary, the company gave away 11,000 e-bikes from its sister company Husqvarna. This means that there are almost three e-bikes for every KTM employee. As not all bikes can be used privately, the second-hand market is now likely to be flooded with a number of quasi-new Husqvarna e-bikes.
Ailing bike manufacturer Simplon takes off with new owner (12.12.2024)
Bike manufacturer Simplon is to get back on track with the help of a financial investor. The Austrian company SOL Capital is planning the complete purchase of Simplon Holding GmbH and wants to secure Simplon's production in the country with around 140 employees in the long term with a capital injection. In a joint press release issued today by the investor and manufacturer, it states: "A corresponding future plan for the successful continuation of operations at SIMPLON Fahrrad GmbH was unanimously approved by the company's creditors on Thursday and confirmed by the Feldkirch Regional Court." The restart of Austria's second largest manufacturer of bicycles should thus be finally secured after three months of reorganisation proceedings.
German e-bike manufacturer Advanced initiates insolvency proceedings (29.11.2024)
The German e-bike manufacturer Advanced Bikes GmbH has filed for insolvency proceedings at Offenbach Local Court. In the company's press release, the two managing directors expressed their regret at the decision taken. This was not easy for them, "as it means a cut in the great work done by the team at Advanced and its partners over the last 13 years" - quotes the industry magazine SAZ Bike, among others.
The aim now is to reorganise the company through the insolvency proceedings. To this end, Advanced intends to draw up a restructuring plan in consultation with the provisional insolvency administrator. The business activities of Advanced GmbH will continue, according to the press release. The subsidiaries Advanced Bikes Switzerland and Advanced Bikes Belgium are therefore not affected by the insolvency, nor is the Advanced sales company in the UK.
End of Santa Cruz and Cervélo production in Mainz
The Pon Group is closing the production facility for the Santa Cruz and Cervélo brands in Mainz. The Mainz plant had only just been rebuilt, but in future production will only take place at the plant in Emstek/Lower Saxony. As the industry magazine SAZ Bike reports, production in Mainz is to continue until the end of the year and then cease in April 2025. This will result in the loss of jobs for around 80 employees. However, the Mainz site will remain for sales, marketing and other support functions.
Positive: Decathlon continues to expand (19.11.2024)
Multi-sport specialist Decathlon has unveiled ambitious growth plans for the German market. According to its press release, the company plans to invest up to 100 million euros by 2027, both in new shops to be opened and in the modernisation of existing locations. Decathlon intends to expand its store network to 150 locations over the next three years, including 60 new branches.
Over the next three years, we will launch a wave of expansion to become the preferred sports brand in Germany. We will create new jobs through the expansion of our store network and new formats. - Arnaud Sauret, CEO of Decathlon Germany
To date, Decathlon has been known in Germany primarily for its large multisport shops, which offer a wide range of products in spaces of between 1,800 and 8,000 square metres. The company is now also planning to open smaller shops of 500 to 1,500 square metres in popular shopping centres and pedestrian zones.
To accompany its expansion strategy, Decathlon is planning to open up to ten workshops in Germany. There are currently workshops in Schwetzingen, Dortmund and Munich, and another location will open in Hamburg at the end of 2024. We have already visited the Munich branch. It remains to be seen whether the outdoor discounter is not overestimating the strength of the German market with its expansion drive. After all, following the boom years, sales in the entire outdoor sector are currently poor. This not only applies to the bicycle industry.
Update from the bicycle industry (12/11/2024): Sales and profits at Giant decline
According to its latest annual report, the Giant Group recorded a drop in turnover of 7.1 per cent in the first three quarters of the financial year. As the industry magazine SAZ Bike reports, this decline, combined with increased expenditure, led to a 33 per cent drop in net profit before tax compared to the previous year.
According to the report, Giant continues to view the global environment as challenging, but intends to continue to drive forward product innovations and consolidate its market position.
Layoffs at Flyer confirmed
At the headquarters of Swiss bicycle manufacturer Flyer in Huttwil, 150 of 170 jobs will be cut. The ZEG Group has decided to close the production of Flyer e-bikes in Switzerland and manufacture them in Germany instead. This decision, which was still unclear at the end of Octoberwas communicated to employees following the conclusion of a consultation process.
Where flyer production in Germany will be relocated to remains to be seen - as do the tasks of the 20 remaining employees. The future use of the production halls in Switzerland has also not yet been decided.
Shimano reports double-digit decline in sales
In the first three quarters of the current financial year, Shimano recorded a 12.3 per cent drop in turnover in the bicycle components sector, while the operating result fell by 26.1 per cent. According to the industry magazine SAZ Bike, sales totalled around 1.5 billion euros compared to the previous year and the operating result was 250 million euros. Despite continued strong interest in bicycles, initial improvements were seen in retail inventories, while stocks of finished bicycles remained high.
Rapha: losses 7 years in a row
Cycling apparel manufacturer Rapha recorded a loss of around 25 million euros in 2023, its seventh consecutive year of losses. In the previous year, the loss was around 15 million euros. Rapha cites the challenges in the cycling industry following the pandemic and the effects of the closure of two important warehouses as reasons for the negative development.
In addition, Rapha recorded a decline of 30,000 new online customers. The number of Rapha Cycle Club (RCC) members also fell by 4,000, from 22,000 to 18,000.
Update from the bicycle industry: Pole Bicycles files for insolvency (18.04.2024)
On 17 April 2024, the Finnish bike manufacturer Pole Bicycles filed for insolvency. This was announced by founder Leo Kokkonen in a YouTube video on the "Rob rides EMTB" channel. According to Kokkonen, the owners of the company can no longer finance Pole Bicycles.
It is unclear for the time being what will happen with Pole. According to Kokkonen, negotiations for an investor failed shortly before the insolvency application was filed. Nevertheless, there is a possibility that Pole Bicycles will be reorganised in the course of the insolvency proceedings, or at least that the brand and know-how will be continued.
Finn Leo Kokkonen founded the Pole Bicycles brand in 2015, and Pole has secured a firm place in the bike community in recent years with its extravagant bikes and unusual ideas. Both the extreme geometries and the special manufacturing processes have made bikes such as the E-MTB Voima (to the test!)the machine or the Enduro Vikkelä (to the test!) into something special. The bikes from Finland also stood out in our BIKE and EMTB tests. Kokkonen's speciality was a special production method that he established for the new models: two frame halves were milled from the solid aluminium block and then glued together.
We have dedicated a separate article to the developments surrounding René Benko's Signa Group and the online retailers affected: Fahrrad.de insolvent - other online retailers falter
Update from the bicycle industry: ZEG (Bulls) reports record year, sales loss at Giant, Accell (Haibike) lays off 100 employees (05.02.2024)
A week ago, the drastic loss in sales of the second largest Taiwanese bike manufacturer Merida (see below) was already causing a bad feeling in the bike industry. After all, Merida also produces bikes for a number of other brands. Now Taiwan's number 1, Giant, published its first figures. And it doesn't look good. The total turnover of the world's largest bicycle manufacturer slumped by 16 per cent to the equivalent of 2.27 billion euros in 2023. Based on the last quarter, Giant even reported a 30 per cent drop in turnover compared to the previous year.
Even more than for the Giant brand itself, this allows conclusions to be drawn about the situation on the market as a whole, because Giant also produces bikes for various major American brands, including Trek as far as we know. A decline in sales at Giant can therefore only be explained by the fact that the situation at the Taiwanese company's OEM customers is at least tense.
By contrast, the Industry giant ZEG from Cologne with its own brands such as Bulls, Pegasus and Zemo. A press release talks about a "record result" for 2023, generated by a slight increase in turnover and optimisations in purchasing and logistics. 40 million euros, a whopping 50 per cent more than last year, are said to have been distributed to members. Perhaps a ray of hope: After all, the ZEG Group, with an annual turnover of 2.3 billion euros, not only includes over 1000 European specialist retailers from France to Germany, Switzerland, Austria and Poland, but also various major brands such as Kettler, Hercules, i:sy and Flyer. The latter in particular could benefit - Flyer was recently in the news due to a large wave of redundancies (see below).
With the Accell Groupknown for brands such as Haibike, Lapierre and Ghost, The trend that recently began with the The end of "made in Germany" at Ghost. Specifically, this time it is about a further relocation of production from Heerenveen in the Netherlands to Turkey and Hungary. This is expected to affect 100 to 150 jobs. Accell hopes that this will simplify the supply chains within the company and increase its own competitiveness.
Update from the bicycle industry: Merida reports sales loss for 2023 (25.01.2024)
When Merida publishes its business figures, the industry takes a close look. After all, the Taiwanese bicycle manufacturer is the second largest in the country after Giant. And its sales figures allow conclusions to be drawn about the sales figures for the entire bicycle industry. Especially as Merida also produces for other well-known brands.
In short: Merida is also feeling the effects of the general reluctance to buy and must Investors in the monthly sales reports some of which reported significant declines in sales.
Merida's relatively poor balance sheet: sales down -26.4 %
According to the report, annual turnover fell by over 26.4 per cent to just under 27.2 billion Taiwanese dollars (equivalent to around 797 million euros). In the three months of the last quarter in particular, turnover slumped by more than half - compared to the particularly successful financial year 2022.
What sounds so dramatic now can also be put into perspective: The 2023 turnover now mentioned is just above the 2020 turnover. Traditionally, Merida does not disclose real sales figures (in bikes) or profits. But Merida's sales figures were not bad before the sales turbo boost called Corona.
Update from the bike industry: Scott receives financial support from parent company (17 January 2024)
Firstly, according to reports from South Korean media, the Swiss bike manufacturer Scott is receiving the equivalent of around 161 million dollars in support from its parent company Youngone Corporation. Youngone acquired an initial 20 per cent stake in Scott in 2013 and then increased it to 50.1 per cent in 2015 - making the South Koreans the main shareholders. In response to our enquiry, the Scott headquarters said:
The bike business needs substantial financing, especially in times when stocks are high, and Youngone has now secured this in the form of a short-term loan. - Scott HQ
In addition, main shareholder Youngone took spectacular action to get rid of longstanding Scott CEO Beat Zaugg. The company's Board of Directors dismissed Zaugg without notice in his absence, and Zaugg publicly contradicted this with a statement quoted in several media outlets. "I am CEO!". As a result of a court order, Zaugg is no longer even allowed to enter the company headquarters in Giviziez, Switzerland. Youngone has confirmed Juwon Kim as the new CEO.
Update from the bicycle industry: Uvex closes production in Obernzell (11 December 2023)
For around 30 years, BSA - a subsidiary of Uvex Sports GmbH & Co. KG. - has been manufacturing helmets for the global market for around 30 years. Uvex has now announced that it will close the BSA production site in Obernzell (Passau district) by the end of 2024. Around 190 jobs will be affected by this closure.
According to the company, the closure of BSA is due to the sharp rise in labour and energy costs in Obernzell as well as high material costs and the continuing reluctance to buy. As a result, the Uvex Sports Group will in future purchase its products, which were previously manufactured at BSA, from third-party suppliers on the global market and continue to sell them. Briefly: The "Made in Germany" label also applies to Uvex helmets - similar to Ghost.
To what extent the departure of the two managing directors of the uvex sports group, Christophe Weissenberger (CEO) and Dr Michael Dannhauser (CFO/COO), in August is connected to the decision to close the site now can only be speculated. Velobiz quotes the managing partner of the Uvex Group, Michael Winter, as saying: "We have made changes to the organisational structure and at the same time assume that market demand will recover from the second half of 2024".
Update from the bicycle industry: Pierer relies entirely on e-bikes (6 December 2023)
The next announcement comes once again from the area of joint ventures between automotive groups and bike manufacturers. The Austrian Pierer Group has decided - and now announced - to focus on the core brands KTM, GASGAS, Husqvarna and MVAgusta. Good for them - on the other hand, the Raymon and Felt brands have been left behind. The Pierer website states:
As a result of this decision, the sale of the Raymon and FELT brands as well as the Disposal of the non-e-bike area initiated by the Executive Board. The sale of the R Raymon brand has been signed in the meantime. Closing will take place by the end of 2023. The R Raymon bicycle brand, which was founded in 2017, is to be continued in a new, independent constellation by Susanne and Felix Puello. Furthermore, the sales process for Bicycle brand FELT to a consortium led by Florian Burguet, which is expected to be finalised in the first half of 2024. Florian Burguet will step down from the Executive Board of PIERER Mobility AG at the end of December. - Press release Pierer Group, 05.12.2023
In other words, Pierer is completely leaving the market for non-motorised bicycles and will focus on e-mobility in the future.
Update from the bike industry: More negative headlines (16 October 2023)
Like you, we are following developments with interest, but above all with concern when the joint ventures between car companies and bicycle manufacturers, which were initially so highly praised, now also crumble. Above all, it was Porsche that wanted to invest massively in the field of e-mobility. With an interest of 10 % in the Manufacturer Greyp In the spring of 2013, the sports car manufacturer bought all the shares - and now: At the end of the year, Porsche plans to scrap the Greyp brand, according to various sources. in stark contrast to the company's statements at the recent IAA (further down). Did the Swabians just fish up the knowledge here to improve their own products and then unite the buyers with their own brand? One thing is certain: The service for Greyp customers will continue for the time being. However, the Greyp site in Croatia is also not to be closed, but, according to media reports, expanded for the production of Porsche e-bike motors. However, there has not yet been any official confirmation from Porsche.
A pure insolvency announcement comes from the Finnish Drive manufacturer Revonte. In 2019, the company presented a mid-motor with continuously variable and automatic gear shifting, which had already been presented at Eurobike and sold a few times. However, the drive wasn't quite ready for the market yet, so further development was needed for the Gen 2 of the drive and money had to be raised for this. However, due to the market situation during the coronavirus pandemic, the Finns were unable to raise the required amount - and are now filing for insolvency. So was it just a short flash in the pan?
The notification of the Car repair chain ATU fits in with the current situation in the bicycle industry. Last year, ATU opened a test workshop for bikes in Munich and announced that it was planning a nationwide network. Employees were already being sought on online portals. Now ATU is announcing a U-turn: There will be no network of bike workshops - the Munich pilot workshop will be closed. End of story.
Contrary to the current uncertain market situation in the bike industry, one company is taking a step into this market. The Housing company Vonovia - one of the largest rental companies in Germany - is founding the start-up Nearbyk and wants to use it to sell, rent and service e-bikes. According to the company, there will initially be stations in Bremen, Essen and Dresden where a bike can be rented from 49 euros per month. The prices will apply to all users - Vonovia wants to offer its own tenants special deals on accessories.
E-bike manufacturer: bankrupt despite high demand?
According to the Berner Zeitung newspaper, many employees at the Swiss E-bike manufacturer Flyer possibly facing redundancy. There are discussions about cutting 80 out of 300 jobs. In a press release about the possible mass redundancies, Flyer emphasises the seriousness of the situation: turnover has fallen by almost 50 percent in the last year and demand has fallen sharply.
Is this case exemplary? The Swiss trade newspaper Handelszeitung notes that Flyer had only put a third production line into operation in spring 2021 in order to increase sales from around 70,000 bikes per year to up to 100,000 units. But was Flyer too optimistic about the pandemic peak and the sharp rise in demand at the time and miscalculated?
The KSR Group - which also includes the Malaguti brand which also produces e-bikes, among other things - is now filing for insolvency. As Bike & Business reports, the company has accumulated debts of up to 123.3 million euros. It must be said that KSR is mainly active in the motorbike business. But even there, the reasoning is the same: The economic situation in the markets had changed drastically due to increased energy prices, high inflation and a loss of purchasing power among customers. Further burdens are high material costs, exchange rate fluctuations and declining sales due to a stronger than expected consumer reluctance to buy. All of this will have an impact on both motorbikes and (e-)bikes.
Do takeovers of bicycle manufacturers by automotive groups protect against bankruptcies?
On the other hand, the recent IAA Mobility trade fair showed how strongly the topic of bicycles is also being discussed and considered by automotive companies. As an example, the managing director of Porsche E-Bike Performance GmbHDr Jan Becker, that there are Since the acquisition of the e-bike motor manufacturer Fazua and the e-bike brand Greyp is going "steeply uphill" (source: velobiz). In May, the company had already exceeded last year's production volume.
At Vanmoof the McLaren car company in the form of the subsidiary Lavoie. It is intended to bring new money into the insolvent company. Is the automotive industry the solution here too? The fact is that e-bikes in particular are becoming increasingly complex. This applies not only to the e-drive itself, but also to the entire periphery, the software, such as battery management, or increasingly as with Bosch - also security technologies. With this development of increasingly complex systems and the growing demand for such electronic bicycles, small, traditional bicycle manufacturers will increasingly be unable to keep pace. This will only be possible with the financial strength and perseverance of a (car) group in the background.
Withdrawal of the first bike manufacturers from costly racing
The first - traditional - manufacturers mentioned above are probably taking measures to reduce expenditure. For example, there are now reports that Ibis is withdrawing from the World Cup circuit. Via social media, the Ibis Racing Team know that the current season is over. There are no reasons or further statements - and no information on how things will continue for the athletes.
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A little later Devinci announced the same step: the end of his involvement with his team in the Enduro World Series. The Canadians made the following statement to Pinkbike:
(...) After careful consideration, in alignment with our evolving vision, we have decided not to field a team for the Enduro World Cup in 2024. This decision was not taken lightly, and it reflects a shift in our focus towards different aspects of our brand and the mountain biking community. (...) - Devinci(...)
Translated: (...) After careful consideration and in line with our evolving vision, we have decided not to field a team for the Enduro World Cup in 2024. This decision was not taken lightly and reflects a shift in our focus towards other aspects of our brand and the mountain bike community. (...) - Devinci
However, the full text does not give any further reasons. It seems that two of these small specialists are also pulling the ripcord here and ending the expensive business in professional sport in order to concentrate on the production and sale of bikes.
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Bike industry forecast for 2024: let's take a look!
Ultimately, the bike industry's forecast for 2024 is as diverse as the bikes and the orientation of the individual manufacturers. The industry medium SAZbike reports for the Pierer Group, which includes bike brands such as Husqvarna, Gasgas and R Raymon belong: In the first half of 2023, the motorbike and bicycle group increased its consolidated turnover by 20.2 per cent to a new record figure of 1,387.6 million euros (previous year: 1,154.1 million euros), with the bicycle division also growing (+37 per cent). Pierer is quoted as saying:
The tight stock situation at bicycle dealers led to an increase in discounts, which had a negative impact on Group EBIT. The bicycle market as a whole is characterised by major changes. The consolidation that has already begun and is expected will have a profound impact on the entire bicycle industry. - Pierer Mobility
Another heavyweight in the bike industry is the Accell Group (including Haibike, Winora, Ghost, Lapierre). According to SAZbike, the figures do not look quite so rosy here: "Thanks to the higher average price of e-bikes, sales rose by 4.5 per cent to 1.44 billion euros. Supply bottlenecks slowed down sales, according to Accell. Net profit fell by 62 per cent to 27 million euros."
When we talk about heavyweights, we also mean Shimano should not be missing. The situation there looks even bleaker: Demand for bicycles is said to be weak, which depressed net sales by over 13 per cent in the first half of 2023. Profit fell by over 33 per cent as a result. And the suspension specialist Fox Racing states that the company's turnover and profit will decline in 2023, according to SAZbike.
In the end, the Forecasts by industry experts, which we had already obtained in spring 2023 and which are now also being emphasised by the Pierer Group. Although the pandemic now has less influence on market development (for now), the boom of this period is probably over for good. Sebastian Tegtmeier from Bike Components put it in a nutshell in March 2023:
(...) An oversupply of complete bikes is looming (...), which could lead to a real price war, especially for inexpensive bikes. And low-cost bikes are also depressing prices in our aftermarket. The whole industry will certainly be in for a turbulent time. - Sebastian Tegtmeier, Bike Components
Marc Strucken
Editor
