Bicycle manufacturer Rocky Mountain has announced plans to restructure its operations under the Companies’ Creditors Arrangement Act.
The Canadian company, which has its head office in Saint-Georges de Beauce, is going through a difficult period.
RAD Industries announced that it has filed an application with the Superior Court of Quebec to obtain the protection of the Court under the Companies’ Creditors Arrangement Act.
Across the industry, sales jumped at the start of the pandemic, but the decline was significant after the health crisis.
“Despite strong demand for its bikes during the pandemic, the Company has struggled to secure supplies due to shortages and rising costs. Coming out of the pandemic, the Company had to deal with a marked drop in sales prices,” Rocky Mountain said in a press release released late Thursday.
As with others, margins have tightened, putting unprecedented financial pressures.
“Rocky Mountain has no choice but to initiate restructuring procedures to launch a process of soliciting investors,” we can also read.
The company believes that it will be able to avoid business interruption as much as possible and reduce the impacts resulting from the current situation.
An application will be made to the Court to appoint Ernst & Young to act as statutory auditor.
Rocky Mountain has been designing and developing mountain bikes in the Vancouver area since 1981.
