Tuesday, 18 July 2023

VanMoof e-bikes has declared bankruptcy

E-bike company VanMoof has declared bankruptcy for all its Dutch entities and aims to find a buyer in the "next few weeks." The announcement comes alongside the court of Amsterdam's withdrawal of suspension of payment proceedings and appointment of two trustees to oversee a possible third-party sale of the assets to ideally keep VanMoof functioning. The news came through a mass email to Dutch employees that was subsequently shared on Reddit.

Bankruptcy proceedings have come to VanMoof less than two years after it claimed to be the "most funded e-bike company in the world" while announcing a $128 million investment. Yet, trouble has been brewing for some time, with it allegedly costing more money to sell and service its bikes than people were paying for them. Dutch financial outlet FD reported an €11.9 million ($13.4 million) gross margin loss for VanMoof in 2021, with €8 million ($9 million) spent on repairs and replacements. The company's international entities, in places like the United States and Taiwan, aren't part of the bankruptcy proceedings.

VanMoof told employees there are "no funds to pay the salaries" long-term and gave them a six-week notice period in which they are expected to work and will receive their final payments. Part of this time will entail returning bikes currently in service back to customers. VanMoof is really leaning in on its employees to keep working hard, stating: "It is necessary to stay strong and to continue with your required work. We hope everybody keeps up their best efforts so we can secure a good future for this beautiful company and brand together."

This article originally appeared on Engadget at https://ift.tt/e74O0EP

from Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics https://ift.tt/e74O0EP

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