"I had to part with a few treasures"
BIKE: Markus, do you still have your Aston Martins? Or did you have to sell them?
Markus Flossmann: (laughs) It was a tough start to the interview. But yes, I sold a few investments. Getting YT back was simply more important to me at that moment.
Buying back YT - a big decision.
A very big one. I didn't have to do it. I could have gone on with my life. But I couldn't let YT go under.
Such a rebirth sounds stressful.
In the beginning, I didn't want to buy YT back at all. But when I was looking for investors, it quickly became clear that they hardly wanted to invest any money. I didn't want to leave YT to others for an apple and an egg.
An apple and an egg?
For the size of the brand: yes. Not for me personally, of course. I had to stretch myself a lot. I had a lot of sleepless nights. And I still have sleepless nights. Nevertheless, it was the right decision.
"The industry buckled completely"
Last year, we tested the new Decoy with Bosch motor together. Shortly afterwards, it went bankrupt. Did the collapse surprise you as much as the scene?
We deliberately did not publicise the issue because we were working on a solution that was within reach until the very end. Unfortunately, the main owner decided not to make any further investments. In the end, we were caught out - but we were definitely not alone. The entire industry has been shaken to the core.
Why did the industry collapse so suddenly? Had manufacturers become too greedy during corona?
For us, it was quite the opposite. When Covid started, we put the brakes on at first. Nobody knew what would happen. That's why we stopped pre-orders. After four to six weeks, we saw Demand exploded. After eight weeks, our warehouse was empty. So we reactivated orders. The problem: the delivery time increased from six months to 420 days. Even longer for some components.
In short: you have also misjudged.
Not really. We knew that this was not a permanent situation and we deliberately planned carefully. Other manufacturers ordered twice or three times - for fear of not getting anything else. That paid off later.
Then people wanted to travel again instead of buying bikes.
Exactly. In lockdown, many people bought a mountain bike, a gas barbecue and a pool. Then they wanted to get out again. We actually had our stocks well under control.
So what was the reason?
When we wanted to sell new models at the regular price, there was already a massive discount war going on.
So you were drawn into the discount whirlpool?
Top brands offered up to 70 per cent off the list price. You don't stand a chance. The bargain mentality is particularly strong in Germany.
"The company became too big"
Good bikes, good tests, good image - and still insolvency. How did YT get caught out?
In the end, it was a mixture of several factors. Firstly, the industry crisis. Secondly, a growth plan that no longer worked during the crisis. Thirdly, a cost structure that had become too large.
How big?
When I handed over the company in 2020, we had 115 employees. Good turnover. Positive result. Then the team grew to 220 employees within two and a half years. At the same time, turnover plummeted by 30 per cent. It no longer fit together.
During this time, you were no longer CEO.
I was out of the operational side and more involved in the background with the brand and product.
Critics of the scene say that managers from outside the industry have focussed too much on growth. Is there any truth in this?
I was still the CEO at the time. I don't blame him. We adopted the growth plan together before the crisis. However, it no longer worked during the crisis and it took too long to bring about the necessary changes. As an entrepreneur, I tend to be someone who sees opportunities and makes decisions quickly. Managers often take a more structured and cautious approach to issues, which is a positive thing in itself. However, quick action is often required in times of crisis.
For example?
Too much coordination, too many meetings, too little realisation. We used to be extremely fast - a speedboat instead of a tanker. Unfortunately, we've come a long way from that.
And now?
Now we're a speedboat again. Small team. Clear responsibilities. Everyone is passionate about mountain biking. Quick decisions. It feels like YT again.
"We want to stay small"
Should it stay that way - small and agile, without a large World Cup team?
60 to 80 employees maximum. Then we remain flexible. I'm not ruling out a World Cup team. But as in the past: we would support a team, not finance everything on our own.
Maybe Vali Höll will ride YT again?
If it suits both sides, at any time.
Some former team riders express criticism. Cam Zink, for example.
I'm not going to go into that in detail. It's important to me that we treat each other fairly. At the same time, different points of view are part of it. In the end, you have to make decisions that are right for the company.
Dimitri Lehner
Editor
