E-bike manufacturer VanMoof appears to be headed for bankruptcy.
A proverbial earthquake has occurred in the Dutch bicycle repair landscape. The once illustrious brand, VanMoof, famous for its prestigious electric bicycles, is getting a deferral. This news came after a series of alarming events revealing the deep crisis the company finds itself in.
The deferment of payment, also known as a moratorium, filed by VanMoof is a major sign that the company is in serious financial trouble. Often seen as the last step before a company is declared bankrupt, this legal process is designed to give companies some breathing space to get their financial affairs in order.
radar
VanMoof, which has been on the radar of financial analysts for some time due to suspicions of financial instability, has closed a series of its own stores worldwide "for the safety of employees", according to the company itself. However, customers whose bikes are still inside the stores have lost their bikes as a result, a fact that elicits little sympathy from the already frustrated customers.
The deferred payment request means that VanMoof is temporarily shielded from creditors while it attempts to restructure, renegotiate its debts, or possibly find a buyer. Under the supervision of a court-appointed administrator, who represents the interests of creditors, the company is given the opportunity to develop a plan to recover and survive its business model.
The writing on the wall, however, was to stop selling new bicycles. While the company labeled the move as temporary to catch up on existing orders, it now looks like a first sign of impending doom. Clearly, VanMoof's global expansion ambitions don't match the reality of their financial capabilities.
service points
The news that VanMoof its only own repair point in the South of the Netherlands, located at the former Philips complex Strijp-S, closing and instead working with KwikFit was, given the current state of affairs, an omen. This repair point has been running for less than two years. This decision has left both customers and market observers confused and further highlights the serious problems facing the company.
In Amsterdam, angry customers later stood in front of the closed doors, who wanted to collect their bicycle, but in vain.
The Amsterdam court confirmed to the NRC on Wednesday that a two-month 'cooling off period' has been set by the court, a period during which creditors cannot claim payments or goods from the company. The application for suspension of payment came after negotiations on a bridging loan had stalled. This financing was badly needed, given that the Financieele Dagblad reported on Wednesday morning that VanMoof had missed an interest payment to the crowdfunding platform OnePlanetCrowd. VanMoof had raised a total of 5 million euros through this platform. The newspaper reported that OnePlanetCrowd had sent a letter of formal notice to VanMoof, stating that if interest was not paid within XNUMX days, the investors could reclaim their loan immediately. Due to the cooling-off period imposed by the court, this is no longer possible.
VanMoof's staff — approximately 15.00 people worldwide — were notified of the situation by email on Wednesday evening. This news came as no surprise to some, as VanMoof closed all of its European service stations at XNUMX p.m. on Wednesday afternoon. The court-appointed administrators now have the task of finding a solution to keep VanMoof afloat. But the future of this prestigious brand is anything but certain.
Photo: VanMoof
