VanMoof faces another dark phase as the e-bike startup is backed by hundreds of millions of dollars from venture capitalists. Dutch entities VanMoof Global Holding BV, VanMoof BV and VanMoof Global Support BV were officially declared bankrupt by an Amsterdam court after last-minute attempts to avoid bankruptcy. Two court-appointed trustees are considering selling assets to third parties to keep VanMoof afloat.
Entities outside the Netherlands are part of the group but are not involved in these proceedings. We understand that stores in San Francisco, Seattle, New York and Tokyo are still open, but others are closed. The company has additional information, including how to unlock a bike you already own (if it stops working, allowing you to use it without the app), repair status (stopped), return status (temporarily paused, won’t explain how), when and if) and information in the FAQ about the current situation with the supplier.
On July 17, 2023, the Amsterdam Court lifted the suspension of payment proceedings against the Dutch legal entities VanMoof Global Holding BV, VanMoof BV and VanMoof Global Support BV and declared these organizations bankrupt.
Two managers, Mr Padberg and Mr De Wit, were appointed as trustees. The trustee continues to evaluate VanMoof’s situation and is exploring the possibility of re-emerging from bankruptcy by selling assets to third parties so that VanMoof’s operations can continue.
The development caps a difficult few weeks for the Dutch startup. Early last week, we reported that the company had suspended sales, first saying it was a technical issue and then saying the pause was intentional to catch up on lost production and orders.
Meanwhile, increasingly dissatisfied customers took to social media to complain about the bike’s quality, after-sales service and more. All this comes as the company depletes its cash reserves and struggles to raise more money to avoid bankruptcy and pay its bills.
By the end of the week, the company asked the court to impose a formal moratorium on payment terms to delay payment of bills while it restructures its finances under administrators.
The purpose of this clause is to try to avoid bankruptcy, give more creditors a chance to get what they are owed, and improve VanMoof’s financial position for any next steps. It can last up to 18 months, but only if the company has financing. It was clear that bankruptcy and finding a buyer for the assets was the inevitable next step after the courts determined it was a matter of days.
Beyond the details listed in the FAQ, it’s unclear what kind of bankruptcy will happen to those who bought a bike they haven’t yet received, those who have their bikes repaired, or if you have a VanMoof bike that breaks. situation. Since they are custom designed, this means that they cannot be repaired by anyone. All of this is certainly disappointing considering these bikes cost over $4,000.
But all is not lost for current owners who have a working bike. In addition to VanMoof’s efforts to encourage bike unlocking, we also reported on how one of VanMoof’s main competitors, Cowboy, wasted no time developing an app to unlock VanMoof bikes – which is important since they can end up locked in a basic state , because their operation is closely related to the use of VanMoof applications, and VanMoof applications may no longer be supported.
This points to a worrying prospect for VanMoof, its investors and managers: if the unit economics of the bikes never materialize, an app could be developed that could bring these bikes to market overnight. “Who is ready to take over the assets of a failed startup?”
Post time: Oct-20-2023
