Vässla joins bike industry bankruptcy list

Swedish e-bike and speed pedelec brand Vässla has sadly declared that it has been denied an extension of its corporate restructuring efforts and will now be declared bankrupt.

The CEO of the business yesterday confirmed the news, outlining that though the company was on its way to profitability that the courts were not willing to grant the business more time to get its finances in order.

Rickard Bröms wrote that the brand was ‘days away from securing the necessary funds to exit restructuring’ and had been deeply invested in carving out a future for the brand, having consolidated a team of 60 employees to just five in order to keep the firm trading. The firm had also slashed its operational costs by 90% and negotiated an 85% write-down with creditors.

For those who have not encountered the brand, Vässla is best described as a light electric vehicle specialist that drew on experience from the automotive design world. Christian Zanzotti was the designer who brought to the table experience designing for the likes of BMW, among others.

Its portfolio of products, all of which are currently on sale, range mopeds and speed pedelecs to electric bikes. It sold to the public but was also invested in offering emissions free vehicles for businesses as part of leasing deals.

Its ‘Pedal’ electric bike, with its fairly unique frame design, was badged as a unisex e-bike that embodied cycling simplicity. It had no gears, no buttons or displays, ran on a silent belt drive that fed off a 45Nm rear hub motor and had all the electrics neatly integrated into a oversized top tube that also built in lighting at each end.

The news comes amidst a turbulent period for the entire bike and e-bike industry, which is best explained in a podcast found on our sister site Cyclist.co.uk. The ripple effects of a soured economy and overstock in the supply chain has lead to widespread product discounting, which from a consumer’s perspective means there’s never been a better time to buy an electric bike. From a business perspective, however, it has been tough to navigate and stay profitable.

Are you pondering buying an electric bike of your own? Why not come along to our demo event at the Lee Valley Velopark, taking place April 28th, 2024. Get your tickets at CyclingElectricDemoDays.com, using the code DEMOEB to gain a discount.

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