Another iconic brand is feeling the financial squeeze of the post-pandemic bike market. Following the news of GT Bicycles, Rocky Mountain Bicycles—a name synonymous with mountain biking—has announced it’s restructuring under Canada’s Companies’ Creditors Arrangement Act (CCAA).
Yesterday, Bicycle Retailer broke the news that Rocky Mountain is taking steps to avoid bankruptcy. According to the brand, pandemic-era supply chain issues, skyrocketing costs and a post-pandemic drop in pricing created the perfect storm, forcing them to make tough financial decisions. The goal of this restructuring? To ensure Rocky Mountain’s long-term survival.
Rocky Mountain’s legacy
Founded in 1981 in Vancouver by Sam Mak, Grayson Bain and Jacob Heilbron, Rocky Mountain has been at the heart of mountain biking culture from the beginning. Acquired by Quebec-based Procycle in 1997 (which later rebranded as Rocky Mountain in 2018), the company has continued to innovate while maintaining its roots. Despite celebrating its 40th anniversary in 2021, the brand now faces some of the most significant challenges in its history.
A tough market
“Despite strong demand for Rocky Mountain bikes during the pandemic, the company struggled to secure supplies due to shortages and rising costs,” the brand shared in its press release. “Once the pandemic was over, the company had to contend with a sharp drop in selling prices.” This story is becoming all too familiar across the industry, as many brands struggle to adjust after the bike boom of 2021.
To everyone at Rocky Mountain—employees, athletes and riders—we’re rooting for you. Mountain biking wouldn’t be the same without you.
Rocky’s press release
SAINT-GEORGES, QC, Dec. 19, 2024 /CNW/ – RAD Industries Inc. (the “Company” or “Rocky Mountain”) announced today that it has filed an application with the Superior Court of Québec (Commercial Division) (the “Court”) for Court protection under the Companies’ Creditors Arrangement Act (‘CCAA’).
Despite strong demand for its bikes during the pandemic, the Company struggled to secure supplies due to shortages and rising costs. Once the pandemic was over, the Company had to contend with a sharp drop in selling prices.
As a result, margins have tightened, putting unprecedented financial pressure on the Company. Rocky Mountain has no choice but to initiate restructuring procedures to launch the Sales and Investment Solicitation Process (SISP) to…
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