Bankruptcy Edco Engineering; Brand Continues
‘sHERTOGENBOSCH, the Netherlands – Edco Engineering, manufacturer and supplier of hi-end carbon wheels, components and accessories, has been declared bankrupt. Main reason for the bankruptcy is that one of the major Edco shareholders, Joseph Hsu from Best Top Industrial, decided to withdraw from the company end of 2016.
Last March Full Tech Composites (FTC) and Shenlong stopped delivering rims to Edco. Both companies are connected with Hsu. It meant that Edco Engineering was in trouble.
Expanding growth of the brand
Edco Engineering CEO Rob van Hoek, is extremely unhappy about the bankruptcy and how it came about. “In 2015 and 2016 we have grown substantially in sales, especially in exports. In order to expand on this growth we needed an additional investor end of 2015. FTC already supplied us with rims and Joseph Hsu wanted to act as extra investor. So he became a shareholder. One year later, end 2016, he suddenly insisted on selling his shares.”
Rob van Hoek further explains that with FTC and Shenlong a discussion started on leadtimes and the quality of the delivered rims. “At Edco Engineering high quality was our focal point and innovation was a constant process. The quality of the FTC rims could no longer totally meet our standards.”
It resulted in the fact that FTC wanted its entire investment repaid in one go. This proved almost impossible for Edco Engineering with, next to Van Hoek, a limited number of other shareholders. To put Edco under pressure, FTC and Shenlong stopped delivering rims last March. With that Edco going bust became inevitable and FTC and Shenlong filed for Edco’s bankruptcy on July 28. Directly after the bankruptcy became official one of Joseph Hsu’s companies purchased all Edco Engineering assets including Edco’s trademark leaving all other Edco shareholders empty handed.
Edco has a long history in the bike industry; one that goes back to 1867 while the actual production of bicycle parts started in 1902 in Switzerland. The company obtained the patent for the still-used Presta valve in 1908. In 2000 Edco went bankrupt, to be revived by Rob van Hoek and his team of engineers in 2007. Edo Engineering main markets are the Netherlands, Belgium and the UK. The company is in AM as well as OEM with Eddy Merckx Cycles, JG Bikes and Fuji Bikes as main clients.
Edco Engineering is listed as exhibitor at Eurobike (A1-308). But it remains a question if the new owners will occupy the Edco booth.