Dutch electric bicycle brand VanMoof was forced to declare bankruptcy after brothers Ties and Taco Carlier, co-founders of the brand, were unable to find investment to save it.

In an email sent to staff published by The Verge, the brothers stated: "Over the past few weeks, Ties and I have been trying to find a future for VanMoof. We are very sorry to report that despite our best efforts, we have not succeeded and have had to file for bankruptcy."

The brand, founded in 2009, entered a preliminary "stop payment" period in early July. This is a period during which a company prevents creditors from collecting their claims in order to avoid bankruptcy, but in many cases it can also be the first step toward bankruptcy proceedings. In Van Moof's case, the suspension of payments has already been withdrawn, as the company was declared bankrupt by the Amsterdam District Court on July 17.

The brand reportedly employs 700 people, operates nine branded stores, and has 190,000 customers worldwide; two trustees have been appointed to manage the debt and investigate the possibility of restructuring the company.

"The trustees are currently setting up a process to sell VanMoof's assets and activities in order to find someone willing to continue VanMoof's activities," a statement on the company's website explains.

VanMoof bicycles employ a variety of technological integrations, including app-based unlocking and GPS tracking if the bicycle is stolen. The aforementioned statement reassured current VanMoof owners that the bikes "will remain functional and rideable as we aim to keep the app and servers online and ensure ongoing service in the future."

But almost immediately overriding that prior reassurance, customers are also advised to "create a backup unlock code so you can unlock your bike from a button on the handlebar."

The brand also states that all shipments have been suspended and that it has not been confirmed whether existing orders will be fulfilled."

"Depending on the outcome of the sales process will determine if any outstanding orders can be fulfilled.

This relates to all orders, from full bikes to accessories and spare parts. Because Van Mouffe uses many proprietary parts, some existing customers may remain unable to use their bikes until the bankruptcy proceedings are resolved, assuming they are resolved, of course.

The same can be said about repair appointments. Currently, customers are unable to make repair appointments for their bikes, and Van Mouffe's statement is similar to the above: "Depending on the outcome of the sales process, it will be determined whether repairs will continue at Van Mouffe stores."

The same can be said for repair appointments.

Those with prepaid orders are instructed to file for bankruptcy proceedings. Van Mouffe states that the trustee is "preparing specific procedures" to make this possible.

There is, however, a silver lining for the owner of Van Mouffe's motorcycle, which is currently undergoing repairs. The company has stated that "all repaired and unrepaired bikes owned by riders and located at VanMoof's repair shop in the Netherlands can be taken back by the riders, and the bikes will be sold to the riders for a fee of $350,000.

Of course, VanMoof's declaration of bankruptcy does not necessarily mean that the company will cease to exist; the two trustees' job is to sell the company and its assets or find more capital investment.

Even if the latter is achieved, it will be a far cry from the first round of investment the brand secured: according to an earlier statement by the brand in September 2021, the brand had received one round of investment, led by the Asia-based private equity firm Hill House Investment, of had raised a staggering $182 million over the previous two years, including $128 million in a single round led by Asia-based private equity firm Hillhouse Investment. The brand claims to be "the most funded e-bike company in the world. "

The difficulties facing the brand are just the latest example of companies struggling in the wake of the pandemic. Industry giant Specialized became the most high-profile brand when it cut its ambassador program in December and laid off 8% of its staff in January. Earlier, indoor cycling specialists Wahoo and Zwift were forced to lay off workers, and British distributor Moore Large went out of business and into bankruptcy.