News Article

Kynast: First Plans for Restart

Home

QUAKENBRUCK, Germany (July 21) – The first plans for a restart of Kynast have been announced. According to several German newspapers Kynast GmbH, which once was Europe’s biggest bike maker, is to restart with 340 employees and daughter company Kynast Steel GmbH with 47 people. Currently about 370 people are working at the bike maker […]

QUAKENBRUCK, Germany (July 21) – The first plans for a restart of Kynast have been announced. According to several German newspapers Kynast GmbH, which once was Europe’s biggest bike maker, is to restart with 340 employees and daughter company Kynast Steel GmbH with 47 people. Currently about 370 people are working at the bike maker that had a 2002 turnover of euro 57 million. Last February the lawn mower division of Kynast was sold to a US company.
According to a spokesperson at the office of the receiver, Dr. Stephan Thiemann from Münster, the chances for a restart are there because the problems that caused the debts and poor liquidity do not apply to the entire company. In order to improve the liquidity situation of the company, the Kynast employees recently accepted lower wages. The wages for July have been paid.
Kynast has filed for insolvency last Thursday, July 17. For many of the Kynast employees the second insolvency, after the first one took place in 1999, didn’t come as a complete surprise. According to a newspaper report, many of the workers already got indications about financial troubles when trucks with bicycle components were not unloaded after arriving at the Kynast gates.
As said the first insolvency at Kynast took place in 1999. At that time the German bike maker had a workforce of 1,000 people. After the takeover by MBB Capital GmbH in August 2000, 434 jobs were saved. (JO)

Comment on this article