Prophete: Discount bike manufacturer insolvent after hacker attack

Founded in 1908 and based in Rheda-Wiedenbrück, Prophete sells bicycles, pedelecs and accessories in the low and medium price segment through DIY stores and discounters such as Aldi and Lidl. Until 2011, bicycles were also manufactured at the company's headquarters, but production now takes place exclusively in Romania and India.

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Cycle Union, a subsidiary of the Prophete Group based in Oldenburg, is also affected by the bankruptcy. It produces high-priced bicycles for specialist retailers under the Rabeneick, e-bike manufaktur, vsf fahrradmanufaktur and Kreidler brands.

Hacker attack plunges Prophete into insolvency

The provisional insolvency administrator Michael Sack explained to the F.A.Z.that the filing for insolvency was a consequence of unfortunate events in the highly competitive low-cost segment. In November 2021/2022, there was a hacker attack that paralysed the company for several weeks. "The resulting losses were no longer manageable for the company," Sack summarised.

Sales process started for Prophete Group

The process of selling Prophete and Cycle Union has begun. Several parties have already expressed their interest in the bicycle and e-bike manufacturer. Insolvency administrator Sack is confident that they will succeed in finding a sustainable investor solution by the end of February 2023. Insolvency benefits will also continue to be paid until then in order to secure wages and salaries for around 400 employees. What will happen after that is still uncertain.

Sale of brands, investments & real estate

The operational business operations of Prophete (Rheda-Wiedenbrück) and Cycle Union (Oldenburg) with the brands Prophete, Rabeneick, e-bike manufaktur, vsf fahrradmanufaktur and Kreidler are up for sale. The company's properties in Rheda-Wiedenbrück and Oldenburg are also to be sold. In addition, a 47.5 per cent stake in the Romanian bicycle manufacturer Eurosport DHS is being offered. The company, which is owned by Chinese investors, has been manufacturing bicycles for the European market here since the 1990s - and since Prophete's entry in 2006, also under this name.