44.5 million in debt

A bang! Bike manufacturer Simplon goes bankrupt

A drop in sales of around 30 percent in this year's cycling season is leading to new economic challenges.

(Bild: Hannes Wallner)

The Vorarlberg bike manufacturer Simplon has recently been struggling with severe economic challenges - now the company has filed for insolvency. The company's debts amount to 44.5 million - around 155 employees are affected.

The future for the Vorarlberg-based bike company Simplon is currently very challenging. Despite a strict restructuring course last year, the company is now facing insolvency. According to the company's own statements on Tuesday, its liabilities amount to around 44.5 million euros. The book value of the assets was estimated at 33.2 million euros, or around 7.3 million euros at liquidation value.

A restructuring procedure with self-administration has been applied for and a payment rate of 30 percent within two years is being sought for creditors, according to a press release.

Strong price pressure from competitors
Founded in 1961 as a family business in Hard on Lake Constance, the company was faced with tough competition and strong price pressure in the bicycle industry. Restructuring measures had already been introduced the previous year.

Despite this, the entire industry has seen a decline in bicycle sales of around 30 percent since the spring. Jakob Lusch, Managing Director of Simplon, attributed this to the very late start to the season due to the weather and "still very full warehouses at dealers and manufacturers".

Ongoing operations should be secured
Managing Director Lusch also explained that the company "has been in intensive talks with potential investors for some time now in order to continue the restructuring process". He emphasized the strong reputation and great potential of the Simplon brand in the industry, which had a positive influence on the negotiations.

The restructuring process that has been initiated not only secures the company's ongoing operations and solvency, but also allows for more in-depth discussions with investors. Lusch also announced that the majority of the liabilities, namely 36.1 million of a total of 44.5 million euros, were owed to banks.

155 employees affected 
The current 155 employees as well as customers, suppliers and partners have been informed about the restructuring process. The owners of Simplon Holding GmbH, of which Simplon Fahrrad GmbH is a 100 percent subsidiary, are also united behind the plans and an imminent solution through an investor. In addition to the Austrian domestic market, the bicycles produced by Simplon are mainly exported to Germany, Switzerland and the Benelux countries - the export quota is around 82 percent.