December 20/24 11:10 am - Rocky Mountain Bicycles Files for Creditor Protection

Posted by Editor on 12/20/24
 

One of Canada's iconic bike brands, Rocky Mountain Bicycles, filed an application for creditor protection with the Superior Court of Québec (Commercial Division) for Court protection under the Companies' Creditors Arrangement Act ('CCAA') on Thursday (December 19th).

The company said in a statement:

Despite strong demand for its bikes during the pandemic, the Company struggled to secure supplies due to shortages and rising costs. Once the pandemic was over, the Company had to contend with a sharp drop in selling prices.

As a result, margins have tightened, putting unprecedented financial pressure on the Company. Rocky Mountain has no choice but to initiate restructuring procedures to launch the Sales and Investment Solicitation Process (SISP) to become a resilient and successful long-term business.

By undertaking a restructuring process under the CCAA, the Company will be able to avoid business interruption as much as possible and reduce the resulting impacts of the current situation. The Company will ask the Court to appoint Ernst & Young to act as Monitor under the CCAA. Lavery de Billy is acting as Legal Counsel to the Company.

Rocky Mountain is owned by Procycle, headquartered in St-Georges, Quebec, with the R&D division still in Vancouver, where the company was founded. The vast majority of the bikes are manufactured in Asia [as does much of the bike industry], with numerous models assembled in St-Georges.