Raleigh Cycle Ltd. Starts Licensing the Raleigh Brandname

DINXPERLO, The Netherlands (August 27) - Raleigh Cycle Limited is starting to license the Raleigh brandname. In The Netherlands Raleigh Cycle Ltd reached an agreement about the licensing of its brand with Lanco BV to distribute Raleigh branded bicycles exclusively to Dutch buyers association 'Bike Totaal' as its home brand. Further questions about the licensing of the Raleigh brand in other European (like France where the distribution of Raleigh bicycles is handled through Cycleurope) and Asian countries could not be answered by Raleigh Cycle Limited. However, the licensing fits in the current turnaround of Raleigh which is reshaping itself from a bike manufacturer into a trading company. The licensing agreement in Holland follows the closure of Raleigh Cycle Ltd's Dutch subsidiary Raleigh BV. Sales, marketing and distribution activities will cease due to poor results in the past years. Raleigh Cycle CEO Alan Finden-Crofts stated in its press release: "Given the developments on the Dutch market, I am convinced, that the agreement with Lanco will offer new opportunities for Raleigh's future in Holland." Whether Raleigh's Dutch subsidiary will be eliminated remains unclear, as warranty claims and service matters will be handled for a while at the Dinxperlo office. Finally, what will happen to 'non-Bike Totaal' Dutch Raleigh dealers remained undisclosed, as Raleigh Cycle was unavailable to comment at press-time, because chairman Philip Darnton appears to be on holidays until Monday.(FN)