Accell Group Initiates Insolvency Process for Raleigh Brand

The Netherlands-based Accell Group announced that it has called in administrators for the Raleigh bicycle brand after failing to secure a buyer or a viable continuation plan. The move places the historic Raleigh operation, which still maintains offices in Nottinghamshire, under court-appointed administration.

The Guardian

Raleigh, founded in 1887, once produced one million bicycles annually at its Nottingham factory and employed more than 8,000 workers. After the popularity of classic children’s models such as the Chopper, Grifter and Burner waned in the 1970s and 1980s, the company lost market share and ceased UK production in 2002. In 2012, Accell purchased Raleigh for $100 million (£74 million), ending 125 years of British ownership. Accell also owns the Lapierre, Ghost and Babboe brands.

The Guardian

Accell described itself as the European market leader in e-bikes and the second-largest producer of bicycle parts and accessories, with most manufacturing shifted to Hungary where costs are roughly 30 % lower than its former Dutch facilities. The company faced intense competition from Chinese manufacturers, a trend that has reduced the number of surviving European bike makers. In 2022, U.S. private-equity firm KKR acquired Accell in a €1.4 billion (£1.2 billion) buyout, hoping to capitalize on a pandemic-driven surge in cycling demand. However, the industry’s rapid output expansion left many firms with excess inventory sold at discounts. In February, KKR handed the business to a group of undisclosed European banks and investors. Subsequent talks with Singapore-based Dutech Holdings’ subsidiary Tri Star Group failed to produce a takeover.

The Guardian

Jonas Nilsson, chief executive of Accell, expressed that the situation is “deeply sad and frustrating” for employees, creditors, customers, suppliers and partners. He noted that all realistic options had been explored without success and that the company’s immediate focus is to support an orderly administration process, provide clarity where possible, and preserve viable activities and employment where circumstances allow.

The Guardian

The insolvency of Raleigh’s parent highlights the broader challenges facing European bicycle manufacturers, including cost competition from Asian producers and the difficulty of adjusting to fluctuating demand. The outcome of the administration will affect the remaining UK-based operations and could signal further consolidation in the sector.

The Guardian