I assume I’m the Harvester of Sorrow this week. First the GT Bicycles story, and at this time, I deliver the information that Rocky Mountain Bicycles has utilized for restructuring. The 40+-year-old Canadian bicycle firm utilized with the Superior Court docket of Québec for cover below the Firms’ Collectors Association Act (CCAA).
The press launch says that it was the pandemic that began Rocky Mountain down this path because the model struggled to safe provides as a consequence of shortages and rising prices. After which post-pandemic, Rocky Mountain needed to deal with a pointy drop in promoting costs.
With margins tightening, it put Rocky Mountain below a type of monetary strain they weren’t ready for. So, feeling that their decisions had been restricted, they initiated the restructuring process. They launched the Gross sales and Funding Solicitation Course of (SISP). This can assist them grow to be a “resilient and profitable, long-term enterprise”.
Given the variety of bike manufacturers that appear to be in bother not too long ago, it’s not stunning to listen to of one other that’s dealing with monetary uncertainty. However it’s a shock to listen to that could be a firm as huge and as iconic as Rocky Mountain. We’re hoping the restructuring works out for everybody in the long run!
From the Press Launch
SAINT-GEORGES, QC, Dec. 19, 2024 /CNW/ – RAD Industries Inc. (the “Firm” or “Rocky Mountain“) introduced at this time that it has filed an software with the Superior Court docket of Québec (Industrial Division) (the “Court docket“) for Court docket safety below the Firms’ Collectors Association Act (‘CCAA‘).
Regardless of sturdy demand for its bikes in the course of the pandemic, the Firm struggled to safe provides as a consequence of shortages and rising prices. As soon as the pandemic was over, the Firm needed to deal with a pointy drop in promoting costs.
In consequence, margins have tightened, placing unprecedented monetary strain on the Firm. Rocky Mountain has no alternative however to provoke restructuring procedures to launch the Gross sales and Funding Solicitation Course of (SISP) to grow to be a resilient and profitable long-term enterprise.
By enterprise a restructuring course of below the CCAA, the Firm will be capable to keep away from enterprise interruption as a lot as doable and cut back the ensuing impacts of the present state of affairs. The Firm will ask the Court docket to nominate Ernst & Younger to behave as Monitor below the CCAA. Lavery de Billy is performing as Authorized Counsel to the Firm.
