I suppose I’m the Harvester of Sorrow this week. First the GT Bicycles story, and as we speak, I convey the information that Rocky Mountain Bicycles has utilized for restructuring. The 40+-year-old Canadian bicycle firm utilized with the Superior Court docket of Québec for cover beneath the Corporations’ Collectors Association Act (CCAA).
The press launch says that it was the pandemic that began Rocky Mountain down this path because the model struggled to safe provides because of shortages and rising prices. After which post-pandemic, Rocky Mountain needed to take care of a pointy drop in promoting costs.
With margins tightening, it put Rocky Mountain beneath a type of monetary stress they weren’t ready for. So, feeling that their selections have been restricted, they initiated the restructuring process. They launched the Gross sales and Funding Solicitation Course of (SISP). This may assist them change into a “resilient and profitable, long-term enterprise”.
Given the variety of bike manufacturers that appear to be in bother just lately, it’s not stunning to listen to of one other that’s going through monetary uncertainty. However it’s a shock to listen to that could be a firm as huge and as iconic as Rocky Mountain. We’re hoping the restructuring works out for everybody in the long run!
From the Press Launch
SAINT-GEORGES, QC, Dec. 19, 2024 /CNW/ – RAD Industries Inc. (the “Firm” or “Rocky Mountain“) introduced as we speak that it has filed an software with the Superior Court docket of Québec (Business Division) (the “Court docket“) for Court docket safety beneath the Corporations’ Collectors Association Act (‘CCAA‘).
Regardless of robust demand for its bikes in the course of the pandemic, the Firm struggled to safe provides because of shortages and rising prices. As soon as the pandemic was over, the Firm needed to take care of a pointy drop in promoting costs.
In consequence, margins have tightened, placing unprecedented monetary stress on the Firm. Rocky Mountain has no alternative however to provoke restructuring procedures to launch the Gross sales and Funding Solicitation Course of (SISP) to change into a resilient and profitable long-term enterprise.
By endeavor a restructuring course of beneath the CCAA, the Firm will be capable of keep away from enterprise interruption as a lot as attainable and scale back the ensuing impacts of the present scenario. The Firm will ask the Court docket to nominate Ernst & Younger to behave as Monitor beneath the CCAA. Lavery de Billy is performing as Authorized Counsel to the Firm.
