Restructuring at bike manufacturer Simplon
Simplon, the second largest electric bike manufacturer in Austria, is going through a difficult period and has initiated a self-administered restructuring process due to its insolvency. Discussions with new investors are underway to maintain the activity of this historic company.
The electric bike sector crisis
Whether you are a small, medium or large player in the electric bike industry, the crisis that has hit the sector since 2023 affects everyone. This time, it is Simplon, a major manufacturer in Austria, which is facing serious difficulties. Insolvent, the company could have declared bankruptcy. However, Simplon Fahrrad GmbH has opted for self-administered restructuring, hoping to save the current 155 employees.
Promising discussions
Simplon is in talks with new investors. “We have initiated a sustainable restructuring and are in intensive negotiations with several interested investors. The prospects are very promising because Simplon is recognized for its strong reputation and future potential,” explains Jakob Luksch, CEO of Simplon.
Reasons for the crisis
The reasons for these difficulties are multiple. Jakob Luksch mentions a late start to the season due to bad weather. Overstocking, a recurring problem since 2022, is also cited as a contributing factor.
Repeated attempts
Last year, Simplon had already attempted a restructuring with a renewed catalog, an expanded dealer network and several strategic adjustments. Unfortunately, these efforts did not manage to boost sales, and the company now has a debt of 44.5 million euros.
A historic player
Foundation and exportation
Founded in 1961 in Hard, on the shores of Lake Constance, Simplon is a historic player in cycling in Europe. The majority of its bikes (82%) are exported, mainly to Germany, Switzerland, and the Benelux.
Current promotions
At the moment, big promotions are being offered on Simplon electric bikes, notably on the Bike 24 website.
Cycle crisis since 2022
The cycling sector has been going through a major crisis since 2022, due to inflation, decreasing demand, overstocking, and geopolitical uncertainties. Experts anticipate a recovery in growth by early 2025, but until then, manufacturers must hold on.
