Insolvent Sachs SFM Continues Dealer Deliveries
NUREMBERG, Germany – German SFM insolvency, on which Bike Europe reported last Thursday, is not affecting the company’s deliveries to dealers of SFM Bikes, SFM scooters as well as Saxonette e-bikes and pedelecs. This was reported by Markus Kurz of preliminary receiver Schwartz Attorneys.
The business will continue through the company’s partner SFM Bikes Distribution GmbH. “Spare parts will also be distributed through SFM Bikes Distribution GmbH,” explains Markus Kurz.
Reasons for insolvency
Major reason for SFM’s insolvency is, “Big bad debt losses due to the insolvency of the Dutch importer last year. The downgrading of the rating together with the bad debt losses led to a decreasing creditworthiness and perspective on a solid financial position,” notes Kurz.
Moreover, “Sourcing and sales of the two-wheel products could be safeguarded thanks to the partnership with SFM Bikes Distribution GmbH being announced mid of 2013. This gave SFM GmbH the required liquidity. Unfortunately sales were decreasing over the last months due to the unfavorable market situation. All this could not help SFM over the winter period.”
Partner company SFM Bikes Distribution GmbH is not affected by the insolvency of SFM GmbH. This distribution company was founded in 1999 and renamed to SFM Bikes Distribution GmbH when the partnership with SFM GmbH was announced mid-2013.
According to Markus Kurz SFM GmbH’s parent company is Zweiradunion Fahrzeugtechnik GmbH based in Germany and owned by two shareholders: Sunrise New Energy Co. Ltd. and Rising International Holding Co. Ltd out of Hongkong.
“Since October 2012 SFM GmbH is no longer involved in the brand Saxonette in all countries except Germany ,” says Arno Cup, owner of E-bike Nederland and Saxonette distributor. He also stipulates that deliveries will continue without interruption. When we started as Saxonette distributor last autumn 2012 the brand name was already owned by Geoby. In that perspective nothing will change.”
Shuguang Wang – General Manager of Geoby International, CEO of Geoby Electric Vehicles and former General Manager of SFM GmbH, points out that he is not involved and has nothing to do with the current SFM GmbH insolvency.