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Dutch Bike Maker Union Bankrupt

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ZWOLLE, The Netherlands (November 20) – A Dutch court announced today the bankruptcy of bicycle manufacturer Union in Nieuwleusen, The Netherlands. The bankruptcy does not affect Union mother, the Winning Wheels holding company owned by Rob van der Linden. The trustee handling the bankruptcy, Mr. H.R. Quint lawyers in Zwolle, said today that a new […]

ZWOLLE, The Netherlands (November 20) – A Dutch court announced today the bankruptcy of bicycle manufacturer Union in Nieuwleusen, The Netherlands. The bankruptcy does not affect Union mother, the Winning Wheels holding company owned by Rob van der Linden. The trustee handling the bankruptcy, Mr. H.R. Quint lawyers in Zwolle, said today that a new start of the company is likely and that interested parties have until tomorrow, November 21 to make themselves known to him. A number of potential take-over candidates have already called upon the trustee but so far no decisions have been made about the future of Union. However, what seems to be the likely scenario is that bicycle production in the outdated Nieuwleusen facility will stop completely while the Union brand name will continue to be used for sales at IBD’s in Holland. Union used to sell about 60,000 branded bicycles per year.
The bankruptcy follows after the announcement of suspension of payments end October. This was caused by Sachs FMT in Nürnberg, Germany that filed petition for the Union bankruptcy for unpaid bills amounting to DEM 1.1 million (EUR562,000). Sachs FMT filed the petition for bankruptcy after the break-up of negotiations for a merger between Union and United Bicycles in Belgium. After the break-up Dutch Accell Group NV announced that it had been approached by Union for participation or a complete take-over of Union.
Already about three weeks ago production at the Union facility in Nieuwleusen was stopped and the about 120 employees were send home. Decisions about the future of Union are expected for the end of this week. (JO)

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