155 employees are affected. A restructuring procedure with self-administration has been applied for, and a payment rate of 30 percent within two years is therefore being sought for creditors, according to a press release.
The company, founded in 1961 as a family business in Hard on Lake Constance, reported intense competition and high price pressure in the bicycle business. The company had already embarked on a strict restructuring course last year. Since spring, however, the number of bicycles sold across the industry has fallen by around 30 percent. Simplon managing director Jakob Lusch cited the extremely late start to the season due to the weather and “still very full warehouses at dealers and manufacturers” as reasons for this.
Negotiations with potential investors
In order to continue the restructuring course, the company has been in intensive negotiations with several potential investors for some time, said Lusch. “We are in very good talks because Simplon is known as a brand with a strong reputation and great potential in the industry,” said the managing director. The restructuring process will ensure that operations and solvency are secured. It will also enable ongoing discussions with investors to be further intensified. According to Lusch, the majority of liabilities – 36.1 of the 44.5 million euros – are attributable to banks.
The current 155 employees as well as customers, suppliers and partners have been informed about the restructuring process. The owners of Simplon Holding GmbH, whose 100 percent subsidiary is Simplon Fahrrad GmbH, are also fully behind the plans and a solution through an investor coming on board. The bicycles produced by Simplon are sold to Germany, Switzerland and the Benelux countries in addition to the domestic market of Austria. The export quota is around 82 percent.