Italian bike brand Bianchi has asked the courts for protection from its creditors while it restructures its business after several years of losses and operational changes. This is according to a report by Suvi Loponen on the Escape Collective website.
The long and the short of it is that Bianchi has asked for creditor protection under Italian law while it negotiates new terms with banks and suppliers and attempts to restore financial stability.
Founded way back in 1885, it’s fair to say that few brands can rival Bianchi’s history, but at the end of September the company requested Composizione Negoziata della Crisi d’Impresa (CNC), an Italian legal procedure designed to help businesses experiencing economic difficulties by negotiating an agreement with their creditors.
CNC is often translated as “Negotiated Settlement of the Business Crisis” or “Negotiated Crisis Resolution”. The idea is that it gives a business that is experiencing financial difficulties an opportunity to restructure its debts and restore its financial viability before the situation deteriorates. The objective is to preserve the business. The ordinary deadline is reportedly the end of January 2027, potentially extendable until the end of May 2027.
Escape Collective reports that Bianchi owed about €100 million, including €64.3 million to banks, at the end of 2024, when it last published its full accounts.
Although it was making a profit during the Covid pandemic, Bianchi has lost a lot in the post-pandemic crash, and there have been several changes of leadership during that time. The company’s new Italian factory, which we first reported on way back in 2021, has required huge investment and anticipated upturns in the bike industry’s fortunes have failed to materialise over the past couple of years. As an aside, just last week it was announced that Bahrain Victorious would stop riding Bianchi bikes in the WorldTour with immediate effect.
The current CEO of Bianchi, Tony Grimaldi, is reported as saying, “We were investing a lot in too many areas at the same time. We have been too ambitious in too many segments, and the bicycle industry is so tough. You cannot do everything everywhere, especially when we know that the market is oversupplied.”
Escape Collective also quotes Tony Grimaldi as saying, “When you go into it [the CNC], you do it because you are convinced you can restructure and that you have a plan. In our core business, Bianchi has strong credibility. And we have good products.”
We have approached Bianchi for a direct comment and will update this story if we receive one.
