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.
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.
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.