The market for bicycles is currently very turbulent: during the coronavirus pandemic, there was a lot of time and probably also more money, as many sports or vacations were not possible. A bike was just the thing. As a result, vehicle sales in the bike industry soared during the pandemic. This was followed by massive repeat orders, which arrived on the market far too late due to supply chain disruptions. The current situation: supply is massively higher than demand, which is creating enormous price pressure. As the market is saturated, it is even more difficult to sell new vehicles.

Simplon is feeling the effects of this situation and has announced that the 2024 season will be characterized by a 30% drop in demand. According to media reports, the Austrian company has debts of around 45 million euros and is initiating a restructuring procedure with self-administration established in Austria. The manufacturer from Hard on Lake Constance therefore intends to restructure itself.

This step will safeguard the company's operations and solvency. According to Simplon, talks are also underway with investors to secure the company's future.

simplon.com