Bikemaker Accell Group has filed for insolvency after private equity group KKR and its backers lost their investment following a €1.8bn pandemic-era bet. The owner of brands like Raleigh and Babboe cargo bikes announced its Dutch entities were granted suspension of payments, a form of insolvency.
This follows four difficult years since KKR led a consortium to take Accell private in 2022. In February, KKR handed its remaining equity stake to lenders after the company's second debt restructuring. KKR and its backers lost their entire €1.1bn equity investment and hundreds of millions more. The initial bet was on continued e-bike sales growth, but Accell experienced lower-than-expected growth, supply-chain disruptions, and over-ordering.
Accell faced mounting inventories, significant discounts, and slashed stock values. Despite a €300mn loan extension and a first restructuring, the company continued to burn cash. A second restructuring earlier this year led to KKR ceding control to lenders. Chief executive Jonas Nilsson stated that no solution was found to continue the group in its current form.
Source: Financial Times Companies · Summarized by HeadlinesBriefing