Brighter days ahead for bike industry? Raleigh owner reports inventory levels back to normal

The major Dutch cycling company Accell Group, which owns Raleigh, Babboe, Lapierre, Ghost and numerous other bike brands, says its parts and accessories inventory is already back to normal and bike inventory levels are expected to reach the same point by the end of the year.

Overstocking and excess inventory has been one of the major challenges facing the bike industry in the past few years, big orders being made during the pandemic to meet soaring demand, something which then caused issues when demand subsequently dropped off and the leftover tech was hard to shift.

> Bike industry told to "survive until 2025" as cycling market report says overstock issues "might be resolved" next year

However, Accell Group has reported its inventory levels are back to normal levels and also reached agreement with a majority of its financial stakeholders to reduce its debt by approximately 40 per cent, €600 million of a total €1.4 billion, and it will see around €235 million in additional cash funding available to the business.

" This provides us with a sustainable financial structure, a strengthened liquidity position and an ability to invest in the future," Accell said in a statement reported by Bike Europe.

"Optimistic long-term outlook of the bike market"

CEO Tjeerd Jegen said the "confidence in the business" from stakeholders "supports the optimistic long-term outlook of the bike market".

"Over the past year, we have taken actions to bring down cost levels and increase efficiency. These actions have already strongly improved our competitive position. To accelerate on our business strategy, and weather the continued challenging market circumstances, we also needed to adjust our financial structure," he said of the transaction which will the the maturity of the group's recapitalised debt extended to 2030.

Those cost-cutting actions mentioned above include the merging of facilities in its European production, cutting jobs and moving some production to Hungary and Turkey from the Netherlands.

That announcement came just weeks after redundancies at Raleigh were confirmed as part of a restructuring process at the iconic British bike brand's Nottingham headquarters.

> Raleigh owner Accell Group to cut jobs and streamline European production to "simplify operations and enhance efficiency"

In June, credit rating provider Fitch Ratings downgraded Accell's credit rating for the fourth time in a year, the news coming at the same time as the group's cargo bike manufacturer Babboe was heavily criticised for its "shambles" recall of faulty frames.

In August, Raleigh was issued a First Gazette notice for compulsory strike-off by Companies House, a warning that was promptly discontinued after the late filing of financial accounts were addressed as Accell took the blame, saying it was "due to the ongoing process regarding its financial structure".

Not long after, the iconic British bike manufacturer confirmed it would be staying in Nottingham (and moving to a historic new HQ), months after the job cuts and move away from its previous base.