MAASMECHELEN, Belgium (Oct 28) – As a result of disappointing sales results, United Bicycles has run into financial roubles. The company has applied for Chapter 11 protection. Formally, this means that the company will go on producing bicycles for the coming months, but will be protected against claims by debtors. This will hopefully buy the time to investigate the possibility of a continuation of UB.
Mr. Albert Clerens, attorney in Brussels, has been appointed as overseer. This also means that the board of UB has stepped down. United Bicycles is currently negotiating with several parties, including a Chinese producer.
It is not the first time UB hit dire times: in 1999, the company, which was then called MGI, went bankrupt. Under the new name United Bicycles production continued, but in December 2002 things went wrong again, and the factory went bankrupt another time. Nevertheless, production continued in 2003 after a thorough reorganisation.(MH)