Raleigh bike brand faces chop after owner begins insolvency proceedings
Summary
The company that owns the Raleigh bicycle brand has started insolvency proceedings after failing to find a buyer. The Netherlands-based Accell Group, which owns Raleigh and other bike brands, could not find a way to keep the business running in its current form.Key Facts
- Raleigh is a historic bike brand founded in 1887 and was once the largest bike maker in the world.
- Production in England stopped in 2002, and the brand was sold to Accell Group in 2012 for $100 million.
- Accell Group owns several bike brands and shifted most production to Hungary to reduce costs by about 30%.
- Accell was acquired in 2022 by U.S. private equity firm KKR for €1.4 billion, aiming to benefit from growth in cycling.
- The bike industry faced challenges after a pandemic-driven surge in demand dropped, leaving too much unsold stock.
- KKR handed over Accell to creditors in February 2024 after cost-cutting and takeover talks failed.
- Accell’s CEO said all options were tried but no way was found to continue the business as it was.
- The company is now working with court-appointed administrators to preserve parts of the business and jobs where possible.
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