Veloring Restructures and Restarts
MONCHENGLADBACH, Germany (January 29) – German buying association Veloring GmbH & Co. KG is restructuring while its member-organisations Veloring Dienstleistungsgesellschaft (VDG) mbH and Veloring Benelux BV have been taken over by Ricar Systems Europe BV, a company owned by a Dutch private investor who holds other interests in the bike business. The IBD’s cooperative which […]
MONCHENGLADBACH, Germany (January 29) – German buying association Veloring GmbH & Co. KG is restructuring while its member-organisations Veloring Dienstleistungsgesellschaft (VDG) mbH and Veloring Benelux BV have been taken over by Ricar Systems Europe BV, a company owned by a Dutch private investor who holds other interests in the bike business. The IBD’s cooperative which operates next to Germany also in Holland and Belgium, is faced with financial difficulties in Germany. To counter these problems, a new structure for Veloring has been set up in which the German and Benelux member-organisations are independent companies.
Rumours about financial problems at the German Verloring parent company were already buzzing for some time but grew stronger after the annual general meeting of January 20. Here Managing Director Ad Roest proposed his members to raise their invested capital in Veloring GmbH & Co. KG. The proposal was voted down after which Ad Roest worked on setting up a new structure for the whole Veloring organisation. Main reason for the new setup is Veloring’s central warehouse which is a major cause for the current financial difficulties. Within the new setup the central warehouse is operating under Veloring GmbH & Co. KG. This company will sell the remaining stock in the central warehouse while the revenues will be used to pay off Veloring’s debts. After that Veloring will stop its central warehouse.
Within the new structure, the member-organisations Veloring Benelux BV en Veloring Dienstleistungsgesellschaft (VDG) mbH are now independent companies. As said, both have been taken over by Ricar Systems Europe BV.
According to MD Ad Roest there are three major causes for the present situation at Veloring’s parent company in Germany; a loss-making central warehouse, a traffic accident which hospitalized Ad Roest for about three months last spring and the strong drop of the German bike market in 2001.
Despite the new Veloring setup with the independent member-organisations Veloring VDG mbH en Veloring Benelux BV, there’s still the possibility of a bankruptcy of Veloring GmbH & Co. KG. However, according to Ad Roest the Veloring members who switch to either one of the new member-organisations will continue to profit from the benefits of the buying association. Entrance fee for the new member organisations is set for € 1,250 while the annual subscription fee is set for € 275. Roest expects about 200 out of the present 450 German members to make the switch to the new Veloring VDG. Furthermore he expects no changes in the about 140 members for Veloring Benelux BV.
Veloring MD Ad Roest emphasizes that payments to suppliers by Veloring members are guaranteed. He also stipulates that during the annual meeting he was asked to continue to head the activities in Germany as well as Holland and Belgium. Furthermore Roest explains: “The takeover enables us to optimize the marketing and communication services for our members. Our new mother Ricar Systems Europe also offers Veloring the financial foundation to make a bigger impact on the markets in Germany, Holland and Belgium, and with that reach the targets for our members.” (JO)