VanMoof Files for Bankruptcy Protection
VanMoof, an electric bike company, has filed for bankruptcy for all its Dutch entities and is now seeking a buyer within the “next few weeks.” The court of Amsterdam has also lifted the suspension of payment proceedings and appointed two trustees to oversee the potential sale of VanMoof’s assets to ensure the company’s continued operation. The news was initially communicated to Dutch employees via a mass email, which was later shared on Reddit.
The bankruptcy filing comes for VanMoof less than two years after it claimed to be the “world’s most funded e-bike company” while announcing a $128 million investment. However, there have been problems for some time, as the sales and maintenance of its bikes have reportedly cost more than people paid for them. Dutch financial institution FD reported a gross margin loss of 11.9 million euros ($13.4 million) for VanMoof in 2021, with 8 million euros ($9 million) spent on repairs and replacements. The company’s international operators, such as those in the United States and Taiwan, are not involved in the bankruptcy proceedings.
VanMoof told the workers there were “no funds to pay salaries” in the long term and gave them six weeks’ notice, during which they would be expected to work and receive their final payments. Part of this time includes returning bikes currently in use to customers. VanMoof really relies on employees to continue working hard, stating, “It is imperative to stay strong and continue your required work. We hope that everyone will continue to do their best to secure a good future for this beautiful company and brand together.”
