VanMoof, the Dutch electric bike manufacturer whose popularity gave it the moniker ‘Tesla of e-bikes’ but has encountered financial difficulties, has been declared bankrupt by a court.
In September 2021, the firm raised $128 million in an effort to expand as it rode a boom in the e-bike sector following the Covid pandemic, which spurred people to seek other modes of transportation.
But it has suffered since then, according to Dutch media, because motorcycles broke down regularly and repairs took too long.
The Amsterdam firm lost about 80 million euros ($90 million) in 2021 and the same amount last year.
After VanMoof applied for creditor protection, an Amsterdam court granted the company a stay of payment last week.
However, the firm stated on Monday that the court has withdrawn the suspension of the payment process against VanMoof’s Dutch legal entities and declared these entities bankrupt.
VanMoof further stated that its legal entities located outside of the Netherlands are not insolvent.
As trustees, two administrators were selected.
In a statement, the company stated, “The trustees are investigating the possibilities of a re-start out of bankruptcy by means of an asset sale to a third party so that the activities of VanMoof can be continued”.
VanMoof’s bikes, which are available in 20 countries, are noted for their sleek, simple design, which includes a hidden battery in the frame. Its bicycles cost several thousand euros.
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