The Dutch e-bike startup VanMoof is on the brink of bankruptcy. The Verge reports the company has entered a so-called ‘suspension of payment’ proceeding, in which a court-appointed administrator helps to lead the company out of debt. All options are on the table.
Meaning Van Moof is also facing a possible sale. The procedure is often also the first step towards insolvency proceedings. Under Dutch law, the “surseance van betaling” process VanMoof just entered is typically granted for up to 18 months. Creditors cannot claim their debts during the said period, which ends once all creditors are paid, a final agreement with creditors is reached (private or judicial), or when the company is declared insolvent.
According to RTL Nieuws, the procedure has already been approved by an Amsterdam court which also appointed two administrators. The Verge also cites a “well-placed source” saying brothers and co-founders Ties and Taco Carlier will still run the company, with Taco continuing to act as CEO. However, the day-to-day leadership team will be joined by a court-appointed administrator with veto power over any decisions to spend money.
Anyone visiting VanMoof’s website will see a pop-up stating that the company has “temporarily suspended” the sale of its e-bikes “to catch up on the production and delivery of existing orders”.
In fact, according to media reports, VanMoof has closed all of its stores in 20 cities worldwide – to protect its employees, it says.
But perhaps not its customers. The Verge, on Wednesday, following rumours of problems at VanMoof, reported angry customers flocked to the company’s flagship store in Amsterdam to pick up their bikes, which had been brought in for service weeks ago.
The news also follows earlier reports of financial trouble at Van Moof. After closing successful financing rounds, the company repeatedly borrowed more money, including gathering 128 million dollars or 108.5 million euros in late 2021. According to the company, this was “the largest Series C investment ever made for a European e-bike brand”. Now the investors want their money back, it appears.
The Verge added Van Moof had posted losses of about €78 million each of the last two years. These are also due to selling e-bikes at a loss due to quality issues that require costly warranty repairs, so the blog.
The company is known for its boxy bikes with clear and thick lines. Its range includes pedelecs and faster e-bikes, such as the VanMoof V, that can reach up to 50 km/h when equipped with two electric motors.
Owners of the recognisable bikes already see doom. According to The Verge, members of the popular VanMoofing Facebook group “fretted over headlines” and urged each other to take protective action, like exporting their Bluetooth encryption keys. “If VanMoof becomes unable to cover its server costs, these keys might be lost forever, leaving countless bikes as electronic waste with no means of retrieval,” reasoned one posting from a top contributor.
The future of VanMoof is now up for the creditors to decide.
theverge.com, rtlnieuws.nl (in Dutch)
Keyword: VanMoof could face insolvency or sale