Kross Takes Over Dutch Multicycle
PRZASNYSZ, Poland – The biggest Polish bike company takes over the Dutch bicycle brand Multicycle, renowned for its modern e-bikes.
Already mid-January the receivers’ law firm JPR lawyers handling the insolvency of Multicycle reported to have found a new owner for the company. The Dutch bike maker was declared bankrupt by the Court in Zutphen mid-November 2016. The bankruptcy concerned Multicycle Inventures Group BV and the four subsidiaries of that holding company as well as that 65 employees of Multicycle lost their jobs. Five weeks after the receivers’ statement there’s now clarity.
Multicycle production to continue
Yesterday, final agreements were reached and signatures were placed by the receiver and by Kross founder and CEO Zbigniew Sosnowski. It prompted the following Kross’ announcement, “The bicycle production under the brand Multicycle will continue in Holland despite its recent financial crisis in November 2016. The Polish bicycle company, Kross S.A. has signed a contract to take over the shares and activities of the Dutch company Multicycle B.V. The bicycle brand is well established in its domestic market for manufacturing high quality urban and trekking bikes, as well as top-end electric bicycles.”
Fit with Kross’ new strategy
The takeover fits with Kross’ new strategy which is to strengthen its position outside Poland. The number 1 bike brand in Poland announced that new strategy in June 2016. It aims on expanding its sales and distribution into other key European markets. Next to that Kross is also to re-start bicycle and e-bike production at Multicycle. Poland‘s biggest bike maker says on that, “Production and continued sales of the brands popular bicycles is expected to recommence in the upcoming weeks. Some of the companies’ employees have already began work. Even though the new legal entity is not assuming the undertakings of the predecessor, the new owner of Multicycle is planning to activate dealer services, which will be available for new and existing customers.” As for dealer services goes, what’s still under discussion is how Kross is to handle warranty claims from the ‘old’ Multicycle dealers.
Entrance into ‘attractive markets’
The over 40-year old brand Multicycle is to present Kross, “A strong entrance into an attractive market of urban bicycles. This new synergy of sales and distribution network as well as technological know-how and industry experience has great potential.” Next to urban bicycles Kross takes over Multicycle because of its e-bikes and the company’s background in this segment. The Polish company notes further, “This takeover will give Multicycle good perspectives of retaining its position as a premium bicycle brand in Holland. Being Poland’s largest bicycle producer and strong European distributor, Kross will also offer profitable opportunities to expand the companies exports. The investors wide network of sales and technological assets will offer a new level of stability.”
Exports to over 40 countries
Kross S.A. produces 300,000 bicycles a year in a wide range covering segments including MTB, road, trekking, electric, urban and children bikes. The company has global exports to over 40 countries. The company further claims, “Kross has built its market stronghold over the last 27 years, thanks to successful marketing activities, including the creation of the professional cycling team, Kross Racing Team – currently ranked amongst the top three teams worldwide. Polish athlete, Maja Włoszczowska (2016 Olympic Game silver medalist) is the teams figure head however, the addition of current UCI World Champion Jolanda Neff for the upcoming season is another milestone for the team and brand. Her decision to join the team and represent the Kross brand, is another clear signal of Kross strength as a major player within the bicycle industry.”