"In principle, we are still well on course for restructuring," explains Christoph Mannel, Managing Director (MD) of Simplon, in an interview with Ride-MTB. The traditional Vorarlberg bike brand, which was founded in 1961 in Hard near Bregenz as a family business, ran into economic turbulence in 2024. In September of last year, with 155 employees, the company had to file for insolvency proceedings under its own responsibility due to liabilities amounting to around 44.5 million euros. In December 2024, SOL Capital Management, an Austrian financial investor, took over the company. GF Mannel, a former CCO of the Accell Group with expertise in the bicycle industry, also joined as an investor. The new management team came on board with the promise to "secure one of the leading brands in Austrian cycling and the purely Austrian production of Simplon with around 140 employees in the long term with an injection of capital".

The unsuccessful search for employees

So much for the noble plan. Just under a year later, Simplon announced that it would be opening a new production site in Romania from 2026. In Hard, meanwhile, a further 21 of the current 112 employees in Austria have been made redundant. Mannel emphasizes that 21 layoffs are not mandatory, but that the Austrian system requires the company to give a specific number in advance without actually assigning names of affected employees to these numbers. However, the redundancies will only affect employees in production in Hard. This will leave around 90 employees. This news seems contradictory in light of the plans announced almost a year ago, which is why Ride-MTB asked GF Mannel.

Is Simplon really well on course for restructuring? Recently, several supposed investor deals that were supposed to get the bike manufacturer back on track have fallen through. But Mannel assures Simplon that the investor is still behind the company. But he also admits that the difficulties proved to be more serious than initially thought. For example, with regard to the workforce and the production site in Vorarlberg. For example, Simplon wants to adapt production more closely to seasonal fluctuations in consumer behavior, which are now becoming more noticeable again after the corona hype has subsided, as Mannel explains: "Demand is again much stronger in summer than in winter. We wanted to compensate for these peaks, but we can't find any final fitters for this work in Vorarlberg." Due to its proximity to Switzerland, the labor market in Vorarlberg is a special one. Those who can, earn their money, and significantly more, in Switzerland. This often makes it difficult for local companies to find workers. Apparently also in the bicycle assembly sector.

Outsourcing to Romania, returning to Austria

This is why the decision was made to cooperate with IKO Sportartikel in Timișoara, Romania, for production. Other well-known brands such as Woom and Corratec also have bikes assembled there. However, Mannel assures that "most of the production, especially the configured bikes, will remain in Vorarlberg". The aim is to better cover these seasonal peaks with the new "outsourcing partner". And Mannel admits frankly: "We had imagined it would be easier to find employees for this in Vorarlberg." According to Mannel, the five-year extension to the lease agreement that the company recently signed for the company headquarters shows that the company is committed to Austria as a long-term location: "It involves 5,000 square meters of production space." As a company, you wouldn't keep it if you didn't plan for it.

Strategically, Simplon wants to refocus on its core competencies. These are primarily innovation, lightness, road bikes and gravel. However, a new e-bike is also planned in the mountain bike segment. However, the focus in future will be on the topics of lightness and innovation, as Mannel emphasizes: "As specialists, we have recently been far too mainstream." As a small company, however, it is not possible to cover such a comprehensive product range, which is why the company now wants to return to its core competencies. Simplon also wants to retain the ability to customize its own bikes, something it is also known for.