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Rocky Mountain Bikes under creditor protection as global bicycle industry reels from effects of pandemic

Rocky Mountain Bikes under creditor protection as global bicycle industry reels from effects of pandemic

Rocky Mountain Bikes and parent company RAD Industries Inc. have filed for creditor protection in the Quebec Superior Court, where documents have revealed the company…

Sunday, Jan 19

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Rocky Mountain Bikes and parent company RAD Industries Inc. have filed for creditor protection in the Quebec Superior Court, where documents have revealed the company is struggling with $68.7 million in debt. (Darryl Dyck/The Canadian Press) Alex Cogger, former chief product officer for Rocky Mountain Bikes, says he was a bit surprised to get a call right before the Christmas holidays informing him he would be temporarily laid off from the company.

The bike manufacturer had recently let a number of employees go and Cogger thought his job would be safe because there already weren’t many people left to maintain operations in North Vancouver, where the company carries out design, prototyping and marketing.

But the layoff call that he and about a dozen people received came on the eve of a creditor protection filing in the Quebec Superior Court, where Rocky Mountain Bikes’ parent company, RAD Industries Inc., revealed its dire financial situation.

According to court documents filed in Quebec, where Rocky Mountain has kept its Saint-Georges headquarters since buying the company from its Vancouver-based founders in 1997, the company’s financial difficulties are the result of a major decrease in demand for bicycles following the COVID-19 pandemic.

RAD Industries’ debt has increased from $48.2 million in the 2022 fiscal year to $68.7 million in 2024. And the company continues to see operating losses, according to court documents, making the future of a bike brand closely tied to British Columbia’s world-famous style of freeride mountain biking uncertain. Pandemic pressures

During the early pandemic, global […]

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