Bicycle brands Raleigh and Lapierre have initiated legal steps to secure their own futures, following Accell Group’s suspension of payments.
Lapierre has filed for judicial reorganisation with the Dijon Commercial Court, while Raleigh has filed a notice of intention to appoint administrators.
“We will fight to preserve as many jobs as possible”
If the authorities approve Lapierre’s request, which is expected to be examined later this month, it will give the French bicycle company the green light to save itself.
"The observation period will give Cycles Lapierre the necessary time to continue its operations, consolidate its recovery plan, and bring in an investor capable of providing long-term financing for its future," a press release said.
The loss of financial support from Accell Group means Lapierre will have to build its own future, secure funding and protect its workforce.
CEO William Perrier said: “We will fight to preserve as many jobs as possible and keep this story alive in Dijon.”
Raleigh's next steps
In the UK, Accell UK & Ireland, the Nottingham-based owner of Raleigh, has filed a notice of attention to appoint administrators. This will give the company a period of around 10 days of legal protection to restructure or sell the business.
On Wednesday 5 August, Accell Group said it was initiating insolvency proceedings just months after the New York investment firm KKR and its backers ceded control of the group to its lenders.
The insolvency proceedings appear to end a troubled period for the group, which owns Haibike, Babboe and more cycling brands alongside Raleigh and Lapierre.
Accell was taken over by a consortium led by KKR in 2022 for €1.8bn, betting on the continued growth of the electric bike market. But the group’s growth was slow and last year it suffered a loss of €390m after posting profits of €27m the previous year.
Raleigh also recorded a loss of more than £30m in 2023. In November 2023, the historic British cycling brand announced job cuts and a restructuring plan.
In January, Accell sold Van Nicholas as it faced continued financial pressure. Then, a month later, the group’s lenders took control from KKR after the company agreed its second debt restructuring within a year. KKR lost the €1.1bn equity it used to buy Accell.
By June, the transfer of Accell to its new owner DuTech Group appeared to be nearing competition, but the takeover fell through.
