Due to "a brutal discount war for survival" following on from the COVID bike boom and subsequent over-stocking of bikes, YT Industries has entered into a process of self-administration.
“While customers scored deals, small brands like us were pushed to the limit", says CEO and founder, Markus Flossmann in a video posted on the YT Industries YouTube channel.
First spotted by Pinkbike, in the video, Flossmann explains that, since he returned a CEO a year ago, YT got back on track, developing new products and reinvesting in the business.
But an unforeseen issue with a key supplier caused major problems, exacerbated by the instability related to the US market earlier in the year.
Next steps
Although money was reinvested to help cover past losses, Flossmann said, "additional funding could not be secured under the current structure.”
"And now, just as the market is starting to recover and with some of our most exciting products just around the corner, we are running out of options", he adds.
As a result, it was decided that YT Industries would enter into a “self-administered legal restructure” under German law.
Alongside enbling the brand to reorganise its finances, it’s hoped they’ll be able to bring in new investors.
According to the release, YT are already in talks with new investors: "this process will make us stronger, smarter and hungrier”, adds Flossmann.
At present, YT will continue to operate as normal, with customer support for any riders.
YT Industries was contacted for comment.
