Frog Bikes files to appoint administrators amid “series of significant challenges”

Frog Bikes has filed an intention to appoint an administrator, the children’s bike brand’s founder stating “all parties are committed to securing a positive outcome for the business, its employees and wider stakeholders”.

The company this morning confirmed to road.cc that a court application was filed on Friday via law firm Shoosmiths, following a “series of significant and well-documented challenges”, including Brexit, higher employee taxes and low consumer confidence.

Back in 2023, Frog reported losses of £500,000 and blamed Brexit “friction” for holding the business back. The brand has now filed an intention to appoint administrators, something it says is a “precautionary measure” to ensure continuation of trading while “potential funding and restructuring solutions” are pursued.

“Tighter financial markets and reduced access to funding made it increasingly difficult for growing manufacturing businesses to secure the requisite working capital required to navigate these challenges,” a spokesperson told road.cc in a statement provided this morning.

“All parties are committed to securing a positive outcome for the business, its employees and wider stakeholders. Frog Bikes’ priority remains supporting its employees, customers, suppliers, and retail partners while working with its advisers to determine the best possible outcome for all stakeholders.”

The bike brand remains hopeful of attracting investment, noting it enjoyed “exceptional growth during the Covid pandemic” and has seen demand rise in recent months too. It will continue to trade and is confident it “remains the clear market leader in premium children’s bikes in the UK”. Just this morning we shared a review of one of Frog’s latest models, the Gravel 53, the bike receiving a strong four-star review. However, while its products remain well-received by the industry and customers, Frog notes a combination of factors “have placed considerable strain on the business”.

“Following a period of exceptional growth during the Covid pandemic, Frog Bikes has faced a series of significant and well-documented challenges that have affected many consumer and manufacturing businesses across the UK and Europe,” the spokesperson explained.

“Pandemic-era demand led to increased production commitments across the industry, which were later impacted by global supply-chain disruption, rising input and logistics costs, and extended lead times. These pressures were compounded by the effects of Brexit, which added further complexity, cost, and uncertainty to international trade and distribution. Recent increases in the cost of employment have further squeezed the business, whilst consumer confidence and discretionary spending remain low.

“At the same time, tighter financial markets and reduced access to funding made it increasingly difficult for growing manufacturing businesses to secure the requisite working capital required to navigate these challenges.

“While Frog Bikes has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of the brand. The search for a suitable partner will continue. However, as a precautionary measure, and to provide a period of stability while these options continue to be assessed, Frog Bikes has filed a notice of intention to appoint administrators. This step offers short-term protection to allow the business to explore potential funding and restructuring solutions in an orderly manner.”

The company has been outspoken in recent years about the challenges and issues facing businesses such as themselves. Back in April 2021, the owners of the children’s bike manufacturer based out of a factory in Pontypool, said Brexit had cost them an extra £250,000 in the first two months of the year.

Two years later co-founders and directors Jerry and Shelley Lawson reported Brexit “friction” was continuing to hold the business back. However, somewhat bizarrely, considering that context, by the end of the year the then-Conservative government was touting Frog Bikes as a post-Brexit “success” story.

The following March, Frog Bikes reacted with disappointment to Jeremy Hunt’s Budget, stating there was little  “encouraging kids to cycle” and “we would have liked to see more going towards cycling”.

Frog Bikes will hope it can find the investment required to continue, a situation similar to what we reported happened at Alpkit recently. While Frog Bikes has only filed an intention to appoint an administrator, Alpkit entered administration. However, the British outdoor sports retailer behind Sonder Bikes reported the next day that all jobs had been saved by a new owner.