In September 2024, Simplon, the long-established Vorarlberg-based bicycle manufacturer, filed for self-administered bankruptcy proceedings for the first time. The family-owned company, founded in 1961 in Hard near Bregenz, had fallen on hard times. At the time, 155 employees were affected, and liabilities totaled approximately 44.5 million euros. In December 2024, SOL Capital Management, an Austrian financial investor, took over the company. Christoph Mannel, who brought expertise in the bicycle industry as the former CCO of the Accell Group, joined as an investor and became managing director. The new management took office with the promise to “secure the long-term future of one of Austria’s leading cycling brands and Simplon’s entirely Austrian manufacturing operations—with approximately 140 employees—through a capital injection.”

The Ruins of a Long-Established Company 

A noble goal that, from today’s perspective, was not achieved. For there is not much left of the once-long-established company. It was split into several companies; brands and licensing rights were transferred to the new Simplon Bike GmbH (which previously operated under the name Simplon Holding GmbH), sales in Germany and Switzerland are handled by separate subsidiaries, and production was moved to Romania. At the Hard location, 2Rad Produktions GmbH (into which Simplon Fahrrad GmbH was absorbed) remained; according to the current insolvency petition, only 54 of the former 155 employees are left in Hard. And their future now seems uncertain. This is because the ongoing restructuring proceedings initiated in 2024 have failed, and on September 2, 2Rad Produktions GmbH filed a petition to open restructuring proceedings without self-administration. It remains to be decided whether the newly filed petition for renewed proceedings under a court-appointed administrator will even be granted. In the current restructuring proposal, a 20 percent dividend is being offered to the total of 150 creditors. This also raises the possibility of bankruptcy and, consequently, the breakup of 2Rad Produktions GmbH. 

According to the Austrian Credit Protection Association (KSV), the liabilities of 2Rad Produktions GmbH—the legal successor to the former family-owned company Simplon and the later Simplon Fahrrad GmbH—amount to 33.4 million euros. Of this amount, 28.3 million euros stem from the previous insolvency proceedings, which are now being revived because the discharge of residual debt is being revoked—as the company can no longer service the next installment, due in December 2026. Overall, the KSV rates the liabilities of 2Rad Produktions GmbH as “very high.” It is also noteworthy that 26 million euros of these debts are owed to a single major creditor. The identity of this creditor is not being disclosed.

Complex Corporate Structure  

The company has not disclosed any figures regarding the liabilities or the number of employees at Simplon Bike GmbH and other subsidiaries. According to the balance sheets, however, the number of employees at Simplon Bike GmbH—which holds the Simplon brand and licensing rights—is likely to be modest. In the annual financial statements from September 2025, the average number of employees for the past fiscal year is listed as 1. Management emphasizes that Simplon Bike GmbH is not affected by the renewed restructuring application because it is an independent company. However, it is also the 100 percent owner of 2Rad Produktions GmbH. 

All in all, a rather complex corporate structure. Yet the individual companies are not quite as financially independent of one another as a glance at the annual financial statements of Simplon Fahrrad GmbH (now the insolvent 2Rad Produktions GmbH) from September 2025 reveals. These financial statements list two bank guarantees that would become effective if the restructuring plan were to fail. One of these is a bill of exchange guarantee from Simplon Bike GmbH in the amount of 33 million euros. The bank waived this bill of exchange guarantee under the strict condition that the restructuring plan be fulfilled on time. Another bank, under the same condition, waived Simplon Bike GmbH’s role as guarantor and payer for the now-insolvent 2Rad Produktions GmbH. Whether and how this will affect the upcoming restructuring application remains to be seen.

The Market and Former Owners to Blame

Company management attributes the recurrence of financial difficulties to “persistently challenging economic conditions in the bicycle market.” In production, significant delivery delays in some cases caused problems. This resulted in losses of revenue and gross profit, which could not be offset due to the long lead time for replacement purchases. The tense situation was further exacerbated by the industry-wide effects of the Accell Group’s insolvency and the resulting reluctance of suppliers to grant payment terms. 

However, the current management also holds the former owners accountable in a statement to the KSV: Communication on the part of the former debtor prior to the acquisition of the shares was not entirely transparent or accurate. It was determined that the inventory taken over from the first insolvency was insufficient and incomplete at the time of the asset transfer following the acquisition. As a result, the existing order backlog could not be processed promptly. The result was impaired delivery capacity and a partial lack of follow-up orders, which in turn led to liquidity problems.

In the coming days, the Regional Court in Feldkirch will rule on the latest restructuring application and thus on the future of Simplon. When asked, company representatives stated that it is currently unclear whether the investor SOL Capital Management will remain on board should an insolvency administrator take over. This will be decided in the coming days and weeks.