Accell Group, the Dutch owner of Raleigh bicycles, has entered court-supervised insolvency proceedings after negotiations over a proposed takeover collapsed, while its UK and Ireland business has filed a notice of intention to appoint administrators.
The company, which also owns brands including Haibike, Lapierre, Ghost and Babboe, said Dutch courts granted a provisional suspension of payments to its Dutch entities from August 5. Court-appointed administrators will now work with Accell’s board as the group considers its future.
Chief executive Jonas Nilsson described the situation as deeply disappointing, saying the company had explored every available option to keep the cycling business operating.
A proposed takeover by Singapore-based DuTech Group recently collapsed despite receiving regulatory approval in Germany, Austria and Poland. Accell said it had held discussions with potential buyers but could not find an arrangement that would allow the group to continue in its existing form.
US private equity firm KKR acquired Accell for €1.56 billion in 2022, financing the transaction through a combination of equity and debt. In February, the group completed a restructuring that significantly reduced its debt and transferred majority control from KKR to a group of lenders.
Accell also sold titanium bicycle specialist Van Nicholas to Italian manufacturer Velo-ce in January.
The financial difficulties come after a sharp change in cycling demand following the pandemic boom. Bicycle manufacturers benefited from a surge in sales during the pandemic, but demand later weakened, leaving many businesses with excess stock and financial pressure.
Several European cycling companies have since collapsed or undergone restructuring, including Dutch electric-bike maker VanMoof, brand group 7Anna, power-meter manufacturer Stages Cycling and online retailer Wiggle Chain Reaction Cycles.
Raleigh, founded in Nottingham in 1887, became one of the world’s best-known bicycle manufacturers. The company introduced the distinctive Chopper bicycle in the 1970s and Accell acquired the Raleigh brand in 2012 for about $100 million.
Raleigh no longer manufactures bicycles in Nottingham. Its UK headquarters are now in Eastwood, Nottinghamshire, and the business has shifted towards electric bicycles.
Company accounts showed Raleigh recorded a pre-tax loss of £30.1 million in 2023, compared with a £6.8 million loss the previous year. Revenue increased 3.5% to £57.7 million.
Insolvency specialist Molly Monks of Parker Walsh said the proceedings highlighted the financial pressures facing established brands. She said a strong reputation could not protect a company from problems involving cash flow, debt, weak demand and excess stock.
Monks said insolvency did not necessarily mean Raleigh would disappear, as its brands could potentially be sold, restructured or continue under new ownership.
Nilsson said the situation was particularly difficult for employees, creditors, customers, suppliers and business partners after efforts to restructure Accell’s operations and finances.
