Major British bikemaker Raleigh has filed for insolvency after operating for 139 years. The company, based in Nottinghamshire, has been part of the cycling industry since 1887.
Insolvency proceedings initiated
Accell UK and Ireland, part of Netherlands-based Accell Group, filed a notice of intention to appoint administrators after it "tirelessly explored" options for the future of the brand. The company has now initiated insolvency proceedings in the Netherlands.
Bosses of Accell said it was a "deeply sad and frustrating situation". The move comes after Accell bought Raleigh in 2012 for around 100 million US dollars, equaling around £74 million.
Restructuring efforts
Accell went through a restructuring in February, which saw it securing additional funding from shareholders and lenders and reducing debts. The company said it had since "explored every possible avenue" for its future, including discussions with potential buyers, but that it had not been possible to find a solution which means the business can continue operating.
Since being founded in 1887, Raleigh has become known for its Chopper model, which featured extended handlebars. It is now part of the brand's "retro" range.
CEO statement
Accell’s chief executive Jonas Nilsson said: “This is a deeply sad and frustrating situation given all the hard work and everything we have achieved, with the support of shareholders and lenders, to restructure Accell’s operations and finances.
"It is an especially difficult moment for our employees, creditors, customers, suppliers, and partners. Every realistic option for the future of the business has been tirelessly explored, and none have resulted in a solution to continue the Group in its current form."
He added: "Our immediate focus is to support an orderly process, provide clarity wherever possible, and work with the relevant court-appointed administrators to preserve viable activities and employment where circumstances allow."
