Raleigh was once the world's largest bicycle maker - but its time could soon be up after 139 years
The firm behind iconic British bikemaker Raleigh is on the verge of collapse after entering insolvency proceedings this week.
Accell Group, the Dutch bicycle company which also runs brands like Haibike, Lapierre and Ghost, is on the brink after a proposed takeover by Singapore's DuTech Group fell apart.
Raleigh was established in Nottingham in 1887 and eventually became the world's largest bicycle manufacturer.
The brand is perhaps best remembered for the Chopper, its hugely popular 1970s design featuring elongated handlebars and a backrest-equipped seat.
Production no longer takes place in Nottingham, and the company's headquarters have relocated to Eastwood in Nottinghamshire.
Its focus has also shifted towards the electric bike market.
The takeover deal had already secured regulatory clearances in Germany, Austria and Poland before it hit a wall.
Accell chief executive Jonas Nilsson lamented a "deeply sad and frustrating situation given all the hard work and everything we have achieved, with the support of shareholders and lenders, to restructure Accell's operations and finances".
"It is an especially difficult moment for our employees, creditors, customers, suppliers and partners," Mr Nilsson added.
"Every realistic option for the future of the business has been tirelessly explored, and none have resulted in a solution to continue the group in its current form."
Accell bought Raleigh, perhaps Britain's most recognisable cycling brand, in 2012 for around $100million (£61.8million at the time).
American private equity giant KKR then bought Accell in 2022 for €1.56billion (£1.3billion), funding the deal with a combination of equity and debt.
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The buyout was built on the assumption that pandemic-driven cycling demand would continue.
Instead, the post-pandemic boom collapsed, and hundreds of millions in new debt left Accell's cash flow crushed by interest payments as revenues declined.
A restructuring followed in February, which significantly reduced the company's debt and shifted majority ownership from KKR to its lending syndicate.
Accell also offloaded its titanium brand Van Nicholas to Italian firm Velo-ce in January.
Despite engaging with potential buyers, no viable deal materialised.
The broader European cycling industry has been ravaged by a severe post-pandemic downturn driven by excess inventory and weakening demand.
Dutch e-bike maker VanMoof, brand group 7Anna, online retail giant Wiggle Chain Reaction Cycles and power-meter specialist Stages Cycling all fell victim to insolvency.
Raleigh's own finances deteriorated sharply, with pre-tax losses ballooning to £30.1 million in 2023 from £6.8 million the previous year, despite turnover rising 3.5 per cent to £57.7 million.
