Key facts
- Accell Group, owner of the Raleigh bicycle brand, has initiated insolvency proceedings.
- The company cited an inability to find a buyer or a viable solution for its current operations.
- Raleigh, founded in 1887, was once the world's largest bike manufacturer.
- Accell Group was acquired by private equity firm KKR in 2022 for €1.4bn.
- KKR transferred ownership to creditors in February 2024.
- Previous takeover talks with Tri Star Group were unsuccessful.
The Netherlands-based Accell Group, the owner of the historic Raleigh bicycle brand, has initiated insolvency proceedings after failing to secure a buyer or find a viable solution for its operations. The company announced on Wednesday that it had called in administrators. Raleigh, founded in 1887, was once the world's largest bicycle manufacturer, producing up to 1 million bicycles annually at its Nottingham factory and employing over 8,000 people. However, after producing iconic models like the Chopper and Grifter in the 1970s and 1980s, the brand lost market share, ceasing production in England in 2002. Accell Group acquired Raleigh in 2012 for $100 million, ending 125 years of British ownership. Accell Group, which also owns brands like Lapierre and Ghost, described itself as a European market leader in e-bikes. The company had moved the vast majority of its production to Hungary to reduce costs by 30% compared to its Dutch factories, facing intense competition from Chinese rivals. In 2022, Accell Group was purchased by US private equity firm KKR for €1.4 billion, aiming to leverage the global resurgence in cycling. However, the industry faced challenges with excess inventory following a pandemic-driven demand surge. KKR subsequently handed over the business to creditors, a group of undisclosed European banks and investors, in February. Subsequent takeover negotiations with Tri Star Group, a subsidiary of Singapore-based Dutech Holdings, proved unsuccessful. Jonas Nilsson, CEO of Accell Group, expressed deep sadness and frustration, stating that all realistic options had been explored without success. The company's immediate focus is on supporting an orderly process and working with court-appointed administrators to preserve viable activities and employment where possible.