Amsterdam-based VanMoof, an e-bike manufacturer, once the most-funded e-bike company in the world, has sought legal protection from the Dutch court to secure the necessary time for settling its outstanding financial bills.
The announcement comes as the Dutch startup has temporarily halted the sale of its bikes and
accessories for nearly two weeks, leading to speculations about its financial situation.
“For the past months, we have been engaged in an intensive process to implement a cost-saving plan and to secure vital additional funding to support VanMoof’s path to profitability. Despite the best efforts of our team, we have not yet been successful,” says the founders.
On July 12, the district court of Amsterdam granted VanMoof (preliminary) suspension of payment (surseance van betaling) and appointed two administrators.
This legal procedure, which typically lasts up to 18 months, is primarily planned to assist companies in avoiding bankruptcy. According to Dutch law, creditors cannot demand repayment of their debts during the suspension of the payment period.
However, the suspension of payment will conclude once all creditors are paid or when the company is officially declared bankrupt.
With the management of VanMoof, the administrators are currently assessing the situation to find a solution so that VanMoof can continue its activities.
“Due to the recent developments, we have decided to temporarily close the brand stores for the safety of our colleagues in the stores. We work hard to continue our services and will separately contact all customers as soon as possible regarding pending deliveries or repairs,” adds the founders.
TechCrunch reported that the CEO, a co-founder, and the president (also an investor) have stepped down from their executive positions.
It all started in late June, when potential customers discovered that the company’s online ordering system was not functioning.
However, the company posted “Unscheduled system maintenance: We’re unable to accept new bike or accessory orders right now. Apologies for any inconvenience caused, our team is on it. Sign up to be notified once we’re back up and riding again.”
Soon after, the company took twitter and changed the story saying it was a technical glitch causing the issue.
VanMoof: Maker of high-tech e-bike
Two Dutch brothers, Taco Carlier, and Ties Carlier, founded VanMoof in 2009 to create a perfect city bike.
VanMoof is known for its sleek, high-tech, and feature-rich e-bikes that help modern city-dwellers get from one place to another faster with a slew of integrated digital devices like anti-theft systems, intelligent motors, and automatic electronic gear shifting.
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