Simplon bicycle maker files for insolvency again

Simplon has become insolvent again, less than two years after its first insolvency, ORF reported. The 2Rad Produktions GmbH, formerly Simplon Fahrrad GmbH, applied for restructuring proceedings without self-administration at the Feldkirch Regional Court on Wednesday. The case affects 54 employees, with debts totalling 33.4 million euros.

The application means the restructuring plan approved at the end of 2024 has failed. According to the KSV1870 creditors’ protection association, around 150 creditors are also affected. Christoph Mannel is the company’s managing director, while Simplon Bike GmbH, formerly Simplon Holding GmbH, is its shareholder.

Missing inventory disrupted deliveries

The company attributed the renewed insolvency to problems during the takeover of the business, according to KSV1870. After the shares were acquired, it became clear that information provided by the previous debtor was “not entirely traceable or correct”. The inventory taken over from the first insolvency was reportedly insufficient and incomplete.

As a result, the company could not process its existing orders quickly because missing parts prevented the bicycles from being completed and delivered. This weakened its ability to supply customers, while some follow-up orders failed to materialise and liquidity came under pressure.

26 million euros owed to one creditor

Of the 33.4 million euros in liabilities now falling due, 28.3 million euros relate to debts from the previous restructuring proceedings. Those debts became due again after the restructuring plan failed. One main creditor is owed 26 million euros, while other creditors are owed around 2.3 million euros.

The company intends to submit a restructuring plan offering creditors a 20 percent repayment rate within two years. KSV1870 has offered to represent all creditors in the proceedings.

First insolvency in 2024

Simplon was founded as a family business in Hard in 1961. In September 2024, the then Simplon Fahrrad GmbH applied for restructuring proceedings with self-administration, reporting liabilities of around 44.5 million euros. The company cited intense competition, heavy price pressure and an industry-wide decline in unit sales as reasons.

A Vienna-based financial investor joined the company in December 2024, and the restructuring plan was approved. Last year, Simplon moved part of its production to Romania and cut jobs in Hard.