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.