Iron Horse $5 million in debt?

Asian suppliers file petition for bankruptcy

Iron Horse are said to be $5m in debt

Reports suggest Iron Horse are $5 million (£3.46m) in debt. We revealed last month that the US mountain bike brand’s parent company had gone bust and they were looking for a buyer, but things have gone eerily quiet since.

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Now US industry website Bicycle Retailer has reported that three Asian factories have filed an involuntary petition for bankruptcy against Iron Horse in an effort to recoup more than $5 million in back debt.

In the motion, the creditors claim there was an aborted attempt to sell Iron Horse for $2m (£1.38m) over a year ago, and they accuse company bosses of financial misconduct, including putting their spouses on the payroll. Iron Horse have until March 25 to file objections.

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It was announced last year that the brand had lost the licence to use Dave Weagle’s dw-link suspension platform, as used on their world-beating Sunday frame. Instead, they were planning to produce a new range using Tony Ellsworth’s ICT design. Iron Horse’s former president and one-time co-owner Stew Barnett left the company in September.