Dutch e-bike brand VanMoof has been declared bankrupt. Administrators are looking into whether it can sell assets and restructure. The news came after VanMoof stores closed last week when the firm filed for protection from creditors.
Yesterday (July 17), an Amsterdam judge removed the “suspension of payment” ruling protecting the firm from creditors and instead declared Dutch entities VanMoof Global Holding BV, VanMoof BV and Van Moof Global Support BV bankrupt.
The company said its international subsidiaries are not currently "in insolvency proceedings." It added that it was, “still exploring and understanding the impact of the bankruptcy of the Dutch entities on the other legal entities. Our intention is to keep these entities running as usual. If we have any news on this matter, it will be shared.”
Reuters reports that the administrators named to oversee the company "are continuing to assess the situation at VanMoof and are investigating the possibility" of a restructuring that would allow the company to continue operating.
This could involve the sale of assets. The Verge reports that a third party could now buy up VanMoof’s operations without having to take responsibility for the company’s outstanding debt.
What does this mean for owners?
At this point, the most pressing question for owners is of course whether their bikes will stop working as a result of the bankruptcy.
A post on the company’s website states: “No, your bike will remain functional and rideable, as we aim to keep our app and servers online and aim to secure the ongoing services for the future. As unforeseen circumstances could arise, we advise you to create a backup unlock code so you can unlock your bike through the buttons on your handlebar. You can find instructions on how to create/reset a backup unlock code in our knowledge base.”
It’s worth pointing out that Belgian rival Cowboy has also knocked out an app that will enable VanMoof riders to generate their unique digital key and keep riding.
Repairs are, however, another matter.
VanMoof bike technology is very specific and the bikes need to be repaired at a shop with VanMoof-specific parts. As ebiketips pointed out in our review of the VanMoof S3, “You can't even change a tyre without a specific tool to remove the security bolts on each wheel.”
VanMoof says it is no longer possible to schedule a repair appointment in the VanMoof stores in the Netherlands. “Depending on the outcome of the sales process, it will be decided if repairs in the VanMoof stores are continued.”
The firm had already stopped selling and shipping individual spare parts to customers. “Depending on the outcome of the sales process, it may be possible that this option is offered again.”
What went wrong?
In September 2021, VanMoof titled itself “the most funded e-bike company in the world” after securing $182m (£132m) in investment from Gillian Tans, Hillhouse Investment, Norwest Venture Partners, Felix Capital, Balderton Capital and TriplePoint Capital.
However, in January of this year doubts emerged about the company's ability to continue beyond the first quarter unless further investment was secured. Having reportedly been looking for €10-40m, only €4.75m appears to have been raised.
Like many bike manufacturers, VanMoof suffered supply chain woes, but it was also hit by quality control issues which were then compounded by its widespread use of proprietary tech. The firm also sold ‘Peace of Mind’ services that included a theft package where a replacement bike was guaranteed in the event the stolen one could not be recovered inside two weeks.
In 2021, Dutch financial newspaper FD calculated that the cost of selling a VanMoof bike set the brand back more than the bike's retail price.
