Accell Group files for insolvency

Accell Group and its Dutch subsidiaries have filed for insolvency.

In a statement, the company said it had “exhausted all the available options” and was “no longer able to meet its financial obligations”. Therefore, it initiated local insolvency proceedings for the relevant Group subsidiaries as the necessary next step.

“This is a deeply sad and frustrating situation given all the hard work and everything we have achieved, with the support of shareholders and lenders, to restructure Accell’s operations and finances,” said Jonas Nilsson, CEO of Accell Group. “Every realistic option for the future of the business has been tirelessly explored, and none have resulted in a solution to continue the Group in its current form.”

The news comes about a month after Cycling Industry News reported that the hurdles to the sale of the company to Singapore’s Dutech Group had been cleared, with the German Federal Cartel Office approving the acquisition.

In February this year, Accell revealed it was shifting away from ownership by the KKR investment group and had secured new funding and a substantial debt reduction. The majority of its lenders agreed to a transaction that would significantly reduce Accell’s total debt and considerably strengthen its financial position. The business also stated that the shareholding in Accell would be transferred for the benefit of its existing super senior lenders.

KKR acquired Accell in early 2022, following the lockdown cycling boom but only months before the industry began grappling with its decade-defining overstock problem. After a challenging couple of years and a period of reorganisation, the group agreed in 2024 to reduce its debt by €600 million.

Speaking about the company’s immediate future, Nilsson said: “Our immediate focus is to support an orderly process, provide clarity wherever possible, and work with the relevant court-appointed administrators to preserve viable activities and employment where circumstances allow.”