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Advanced Bikes GmbH, an electric bicycle manufacturer based in the Rhine-Main region, has filed for bankruptcy proceedings at the Offenbach District Court on November 25. The company's subsidiaries are reportedly not affected by this decision, which underscores the broader issues currently facing the European electric bicycle industry.
Founded in 2011, Advanced Bikes garnered attention for its innovative electric bicycles utilizing a unique round frame production technology called Reco. The company has collaborated with Isoco, a plastic frame manufacturer based in Salzgitter, and announced a partnership with Igus to develop components made from recycled plastics at the European Bike Expo in 2023.
The two managing directors of the new factory and headquarters, Helge von Fugler and Wolfgang Momberger, expressed regret over the bankruptcy decision. They noted that “continuing as before” has become impossible under the current market conditions. "Our customers and our own warehouses are full, making it economically unfeasible to operate as we did in the past. With declining sales, our investments in the production facility in Rieste, as well as our offices and development base in Offenbach, have become difficult to recoup."
In the spring of 2023, the new production facility in Rieste commenced operations during a time of soaring electric bicycle sales in Germany and other European countries. The new factory was designed to triple production capacity, aiming for an output of 100,000 bikes. However, the financial challenges the company now faces stem, in part, from the rapid expansion of the e-bike market at that time.
Reports from Velobiz indicate that the subsidiaries Advanced Bikes Switzerland and Advanced Bikes Belgium remain unaffected by the bankruptcy. Ronald Breeman, a spokesperson, highlighted that in the Netherlands, business with the dealer Ebike Factory remains strong. "Order levels are still good, and we can supply all bicycles as planned because we manage our own inventory," Breeman stated.
To facilitate the restructuring process through bankruptcy proceedings, Advanced Bikes is coordinating efforts with legal representation. Dr. Martin Kaltwasser, an attorney from Lieser Rechtsanwälte law firm in Frankfurt, has been appointed as the interim bankruptcy administrator and will work on devising a restructuring plan in the coming weeks.
As Advanced Bikes navigates this challenging period, the company aims to reposition itself in a rapidly changing market landscape and emerge stronger from the restructuring process.