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I guess I am the Harvester of Sorrow this week. First the GT Bicycles story , and today, I bring the news that Rocky Mountain Bicycles has applied for restructuring. The 40+-year-old Canadian bicycle company applied with the Superior Court of Québec for protection under the Companies’ Creditors Arrangement Act (CCAA). (Photos / Rocky Mountain Bicycles) The press release says that it was the pandemic that started Rocky Mountain down this path as the brand struggled to secure supplies due to shortages and rising costs. And then post-pandemic, Rocky Mountain had to contend with a sharp drop in selling prices. Rocky Mountain Restucturing snow With margins tightening, it put Rocky Mountain under a kind of financial pressure they were not prepared for. So, feeling that their choices were limited, they initiated the restructuring procedure. They launched the Sales and Investment Solicitation Process (SISP). This will help them become a “resilient and successful, long-term business”.
Given the number of bike brands that seem to be in trouble recently, it’s not surprising to hear of another that is facing financial uncertainty. But it is a surprise to hear that is a company as big and as iconic as Rocky Mountain. We’re hoping the restructuring works out for everyone in the long term! Rocky Mountain Restucturing trail From the Press Release
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