Bankruptcies and Troubles in Czech Industry

PRAGUE, Czech Republic (December 13) - The present situation in the bicycle industry in the Czech republic is short of dramatic. The 11 September events have had their influence on the Czech economy like anywhere else, combined with earlier signals of an impending economic dip. With the usual short reserves of the starting economies, a number of companies with roots in the European bicycle sector got in financial trouble: Sporting Style went bankrupt. Rock Machine, the third Mountainbike brand on the Czech market, filed for bankruptcy. Lion Bike strongly reduced production and laid off a number of its employees, Superior is in financial difficulty (no further elaboration could be obtained, than that 'great personal changes' (= euphemism for layoffs) are in preparation and the Koprivnice production site will be closed. Olpran has financial difficulties and will structurally reduce production. This list is not exhaustive, but industry observers consider the trade and industrial changes of this moment the worst of the past after-communism period. (MM)