(Montreal) Mountain bike manufacturer Rocky Mountain announced Thursday that it had filed an application with the Superior Court of Quebec to obtain protection under the Companies’ Creditors Arrangement Act.
Posted at 5:38 p.m.
RAD Industries noted that it had difficulty “securing its supplies” due to shortages and rising costs, despite “strong demand for its bicycles during the pandemic”.
The company also reported a marked drop in selling prices as it emerged from the pandemic.
The manufacturer, which is headquartered in Saint-Georges de Beauce, has been designing and testing its mountain bikes in the Vancouver area since 1981.
Rocky Mountain explained its decision Thursday in a press release by a tightening of margins that had exerted “unprecedented financial pressure on the company.”
By undertaking a restructuring process under the Act, the company believes it will be able to “avoid business interruption as much as possible and reduce the impacts resulting from the current situation”.
She also believes that this should allow it to become a “resilient and prosperous company in the long term”.
The company will ask the Court to appoint Ernst & Young to act as monitor under the Companies’ Creditors Arrangement Act.
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