VanMoof has declared bankruptcy, with an email sent to employees recognising a “suspension of payment” after the co-founding brothers failed to secure investment for the struggling brand.
The bankruptcy was declared by the Amsterdam District Court and two trustees have been assigned to manage debts and investigate a possible restart.
The Dutch brand, which was founded in 2009, is a popular manufacturer of urban commuter bikes. VanMoof claims it has 190,000 customers worldwide and 700 employees, with nine brand stores.
It's too early for administrators to say whether the brand can be saved via debt restructuring or asset sales.
VanMoof is one of a number of brands that has suffered since the pandemic, when a large demand for bikes led to a boom that has since subsided.
VanMoof – a brief history
VanMoof was founded in 2009 by brothers Taco and Ties Carlier with the ambition of creating the perfect city bike.
The brand was initially focused on bicycle security, as bikes launched with in-built alarms and motion sensors, though VanMoof’s range is now exclusively electric with a focus on urban mobility.
VanMoof saw success through crowdfunding sites such as Kickstarter, while also being attractive to venture capitalists who invested $128 million in the brand from 2019 to 2021. VanMoof claimed at one point that it was the most-funded bike brand in the world.
What does this mean for VanMoof customers?
VanMoof bikes offer high levels of technological functionality and in-built connectivity, such as GPS tracking in case its bikes get stolen or lost.
In a statement released by VanMoof, the brand says customers who are already in possession of their bikes will continue to be able to ride them with the same functionality because the brand is aiming to keep its servers and application online.
However, the brand says customers should make a back-up unlock code using the buttons on the bike's handlebar should support for their bike's connected features cease.
What about existing orders?
VanMoof says it has halted outgoing deliveries, with a decision yet to be made on whether these orders can be fulfilled.
Customers who have pre-paid for their bikes and have not yet taken delivery will need to file a claim in the bankruptcy proceedings the trustees are managing.
Spare-part support
At the start of the year, VanMoof decided to stop shipping individual replacement parts to consumers, though restarting this may be reconsidered to provide customers with service parts.
Owners of VanMoof bicycles in need of repair will also find there are no appointments available through the dealership network. However, bikes that have been repaired or are at the dealer can be collected.
VanMoof bikes use some proprietary components, which could leave owners in a pickle if replacement parts are not offered in the long-term.
