FEATURE Timeline
The first sign that the financial difficulty came in January this year.
Local media outlets in the Netherlands reported that the brand had gone to its shareholders to request a capital investment in the range of €10 million and €40 million. The appeal fell short with just over €5 million raised, according to PitchBook data. Although unclear why at the time, VanMoof’s most recent accounts showed it would struggle to remain liquid the first quarter of the year without the injection. Business appeared to continue as usual and in late June when a service partnership with KwikFit was announced to increase capacity in the Netherlands.
This was welcomed by the community of riders as for a long time the brand did not supply its parts to third-party bike shops. Combine this with a plethora of proprietary tech, and DIY repairs on VanMoof bikes was nigh-on impossible. A visible chink in the VanMoof armour came in the first week of July. Customers started reporting extended lead times on delivery and then VanMoof paused sales of new e-bikes. Initially cited as an IT issue with the app, an update on the
website confirmed that sales had been suspended “to catch up on the production and delivery of existing orders,” with one source saying it was down to high demand for SX4 and the SA5, two of VanMoof’s newer models. In the peak of the cycling summer, this was an indication that the company was in troubled waters, especially as VanMoof was known for its reliance on pre-orders to boost cash flow.
Silence followed. With no official update, and orders paused for more than
10 days, news broke late on Wednesday, July 12, that VanMoof had filed for Chapter 11 status, effectively putting the company into administration. In a statement, a spokesperson for VanMoof said: “The court has also ordered a cooling down period of two months. “Together with the administrators we are currently assessing the situation in order to find a solution so that VanMoof can continue its activities.” The brand, which employed around 700 people, also took the decision to temporarily close its physical stores on the grounds of staff safety. It came after reports of customer unrest with some said to be seeking refunds for advanced payments on new bikes or to collect their bikes from the workshop. On Tuesday, July 17, Taco Carlier took to Twitter, via the unofficial @VanMooferNews account to confirm that the brand’s Dutch entities had been declared bankrupt. He said: “In the past day, we tried to secure investment to
keep us afloat and honour our commitments with customers and employees, but unfortunately, that was not possible. The
VanMoof was designed with the aim of
reinventing the bike
proposal to other bike companies for a buy-out did not work either. “We have no choice but to file for bankruptcy. To all of you who joined us in this amazing 14-year breakthrough in cycling innovation, thank you from the bottom of my heart.”
Aftermath In its 14 year existence VanMoof had built a strong community of riders, known as “VanMoofers”, with a reported 200,000 worldwide. Due to the integrated app controlling almost all of the
e-bikes capabilities, including a unique digital key to unlock it, owners were at risk of losing the ability to cycle altogether. VanMoof would endeavour to keep the bikes rideable as it
kept the app and servers online, with hopes of securing the ongoing services for the future.
As unforeseen circumstances could arise, owners were advised to create a backup unlock code so they could unlock the bike through the buttons on the handlebar. Belgian e-bike brand Cowboy also stepped in with their own
Bikey app to keep VanMoof owners mobile. Outgoing deliveries of replacement e-bikes, accessories and parts were stopped, and the brand’s stores remained closed. Although the bankruptcy only applied to Dutch entities, staff and customers outside the Netherlands were also impacted.
The UK arm was placed into Creditors’ Voluntary Liquidation and the brand’s Battersea store repossessed by the landlord.
A potential restart At the time of writing, the future of VanMoof remains unclear. A restart remains an option, with the Carlier brothers potentially taking it on with new investment. However, the longer a company falls apart, the harder it is to piece back together. Staff will look to pastures new and the remaining international arms “are struggling”, according to Dutch media. Beyond this, VanMoof reportedly owed millions to suppliers when it collapsed.
Starting a brand in the current market is hard, but rebuilding one that has gone through what VanMoof has could be a different challenge altogether.
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