The major Dutch e-bike manufacturer Stella has requested deferment of payment due to serious financial problems. The company’s 440 employees are at risk of losing their jobs. The consequences for customers are not yet entirely clear.
After years of millions of euros in losses, Stella Fietsen has requested a deferral of payment, which could result in bankruptcy. “The losses have now increased to such an extent that Stella can no longer meet its financial obligations,” the Nunspeet company said.
Like many other e-bike manufacturers, Stella has suffered from disappointing demand for electric bicycles, which has left the company with enormous inventories. “Demand is declining and excessive inventories and tough price competition are also a major setback.” Last year, the major Dutch e-bike manufacturers VanMoof and QWIC also went bankrupt, but both companies made a fresh start.
Investor optimism turned out to be unfounded
Stella has been trying to keep its head above water with a reorganization and other measures since 2022. The e-bike maker was taken over last year by investor DM Equity Partners (DMEP), who had to make additional investments several times to save Stella from collapse.
At the beginning of September, DMEP said it was still ‘optimistic’ about Stella’s future. The investor then stated that things went ‘beyond expectations’. But that revival turned out to be short-lived and was partly the result of all kinds of temporary marketing campaigns. After the revival, bicycle sales fell again.
What are the consequences for Stella customers?
It is not yet known what the consequences will be for consumers who have made a down payment for an electric bicycle and have not yet received their e-bike. Stella says in the FD that she will make ‘maximum efforts’ to accommodate customers. That depends on the administrator, who has yet to be appointed.
Stella has 48 branches in the Netherlands and Belgium and is the second largest brand for electric city bicycles in our country, behind market leader Gazelle. According to a study last year, Stella had a larger market share than competitors such as Sparta, Batavus and Giant.
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