The Amsterdam District Court appointed administrators on Tuesday to oversee the future of VanMoof, considering options such as a sale of the business or its assets. Meanwhile, the impact on the company’s subsidiaries outside the Netherlands remains uncertain.
VanMoof’s UK business accounts reveal net liabilities of £1.7m by the end of December 2021, marking a significant increase from £267k the previous year.
Unfortunately, VanMoof’s bankruptcy comes at a time when the UK cycling market is experiencing a downturn after record sales during the pandemic. According to data from Mintel, electric bike sales multiplied threefold in the five-year period leading up to 2021, jumping from 55,000 in 2017 to 160,000 in 2021. However, as the cost of living crisis hit, experts projected that 2022 sales would hover around 155,000, indicating a decline in purchases due to reduced spending power.
Mintel Reports’ Category Director for Leisure Research, Paul Davies, commented on the situation, stating that the cost remains a major obstacle for e-bike sales, and the depreciation of the pound is likely to drive prices higher in this import-dependent market. He also noted that while e-bike customers tend to be relatively affluent, the ongoing cost of living crisis and income squeeze could delay purchase decisions and price some consumers out of the market.
In addition to e-bikes, mechanical bike sales have also suffered, decreasing by 22% in 2022 compared to pre-Covid levels, as reported by the Bicycle Association.
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