Danish e-bike brand Mate is on the brink of insolvency, reports bike.eu. The company has asked a bankruptcy court to be allowed to restructure in an effort to save the business. The news comes months after the UK arm entered administration and auctioned off its goods.

Founded in 2016, Mate focuses on blending, “contemporary Danish aesthetics with engineering excellence,” according to its website.

Originally a crowdfunding success story, Mate e-bikes were designed to be affordable and smashed their target for the folding e-bike, the Mate X, in 2018, attracting over £12m in backing.

However, since its inception, the company has not made a profit. The two largest creditors listed are Eifo and Nykredit and the total debt has amounted to €9.4m. Mate Bike chairman Anders Kaasgaard told Danish media that they feel, “optimistic that we can create a plan that can partly secure the jobs and the future of Mate Bikes, so we can continue to build this e-bike brand all over the world.”

Kaasgaard is also CEO of Nordic Eye, a brand that has invested €8m in Mate Bike.

After a sharp rise in e-bike popularity during the COVID-19 pandemic, sales grew but the inevitable slow-down and supply chain constraints has continued to hit brands hard, even a few years later.

The news also comes a year after the company was forced to recall non-compliant e-bikes in the UK market, namely 750W 20mph e-bikes listed incorrectly as road-going electrically assisted pedal cycles (EPACs). The UK arm of Mate Bike went into administration earlier this year and sold its assets.