Dutch media site BBV.net is reporting that consumer direct bike label Rose Bikes is currently sat on a stockpile of 45,000 unfinished bikes on account of missing parts meaning final assembly cannot be completed.
The bottleneck in the factory is attributed to a manufacturer in China failing to deliver parts, which in this climate has not become an unusual story, but the company Director has now made comment to the regional news stating that the severity of the situation was unexpected.
Company director Thorsten Heckrath-Rose told the media site that with pressure placed on the company’s finances while the bike stocks are held up, loans have been taken out to see the business through while it manages the situation.
“Because we are transparent and can explain exactly where the current challenges come from, we still have the trust of our lenders. The advantage is that our brand continues to develop well, despite the problems. That creates confidence,” he told reporters.
What this has led to in the meantime is a sale to the tune of 15% on the brand’s bikes as, like many others in the businesses , tries to clear space in a brimming warehouse. Tweewieler reports also that the brand had benefitted from falling shipping costs and raw materials stabilising in price.
Rose Bikes has not done too badly from the past few years, despite the current bottleneck. The company’s Director told media that there had been a 47% rise in turnover between October of 2021 and November of 2022 and that […]
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