Simplon Fahrrad Gmbh: With new reorganisation procedure in talks with investors

The economic situation on the bicycle market with strongly fluctuating demand, supply chain problems and high inventories forced Simplon Fahrrad GmbH 2023 to implement restructuring measures and a strict reorganisation course. According to the press release, the company has liabilities of around 44.5 million euros (liabilities).

As a team and through our joint efforts, we have renewed around 40 per cent of the product portfolio, rejuvenated our brand essence and the brand message and, thanks to a strategic realignment of sales, we have been able to expand the dealer network and acquire major premium retail chains as customers. We have also achieved a significant reduction in personnel and unit costs. In addition, the existing shareholders have made great financial efforts to further secure the future. - Jakob Luksch, Managing Director of Simplon

Simplon again with sales losses due to turbulent market development

Up until the first half of the current year, Simplon performed well in line with its sales plans and forecasts. According to Simplon, the number of bicycles sold across the industry has fallen significantly by around 30 per cent since spring. The Austrians have therefore felt the effects of the current high cost and price pressure, with a corresponding impact on business and a poorer sales trend.

Reorganisation proceedings with self-administration

In its insolvency application, Simplon Fahrrad GmbH states that it was unable to pay 44.5 million euros in invoices - Simplon owes 36.1 million to various banks alone. However, Simplon intends to settle 30 per cent of these outstanding invoices within two years. This is the minimum amount required by law to carry out reorganisation proceedings under self-administration.

According to Simplon's own statements, the management has been in negotiations with several potential investors for some time in order to continue the reorganisation process. "We are in very good talks, as Simplon is known as a brand with a strong reputation and great potential in the industry," explains Jakob Luksch. In order not to jeopardise the negotiations, the company has now started what is known in Austria as "restructuring proceedings with self-administration". This step would secure the company's operations and solvency. It would also allow the ongoing talks with investors to continue.

Simplon: Closed behind refurbishment

The current 155 employees at Simplon in Hard and in the sales force as well as customers, suppliers and partners have been informed about everything and are motivated to continue on the reorganisation course. According to the press release, the owners of Simplon Holding GmbH, of which Simplon Fahrrad GmbH is a 100 per cent subsidiary, also continue to stand united behind the plans to bring in an investor.

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