Hope remains for Eav bikes despite administration

Eav bikes has gone into administration, but is under offer, according to CEO Chris Temple.

The news came after a disastrous Q1 for the firm, including financial commitment withdrawals and order cancellations, which changed Eav’s fortunes “from a very positive, buoyant position with an exciting future to a distressed state almost overnight”.

Eav bikes launched in 2018, focused on last mile logistics. The firm was undergoing a mission to grow profit margin, increase production capacity and create a sales pipeline. 2024 saw a significant reset, including a move to a new factory unit and HQ in Banbury, Oxfordshire. Mid-way through its phase of focusing on product range development and European growth, there appears to have been a rug-pull.

Temple, who joined the firm after being appointed by Eav’s lead investor in early 2024, explained on LinkedIn: “Q1 of this year was hard… really hard! The unexpected withdrawal of a key financial commitment from our major shareholder due to investor fatigue put the company in a vulnerable position, then with additional cash flow challenges caused by customer order withdrawals, delayed payments, parts shortages and legacy legal issues, we went from a very positive, buoyant position with an exciting future to a distressed state almost overnight.”

However, he revealed that an offer has been accepted on the business, and the company seemed likely to move to new owners. He said: “I’m hopeful for the future of the brand, the product is fantastic, the customers are supportive and the market is really starting to grow.”

The cycling industry has had a number of high profile company administrations due – in part at least – to a change in direction from an investor. The direction for WiggleCRC seemed immovably one way when owner SIGNA Sport United NV had its unconditional €150 million Equity Commitment terminated. The firm’s decline, set in motion partly due to strained European training post Brexit, saw it head into administration before Evans Cycles owner Frasers Group moved in.

Also operating in the cycling logistics and last mile sphere as Eav bikes, service provider Zedify went into administration earlier this year. Zedify was unable to raise sufficient funding to continue operating and CIN delved deeper into that particular case with PedalMe in the latest issue of the magazine.