Raleigh owner says inventory levels 'back to normal' as it agrees debt reduction measures
Raleigh owner says inventory levels 'back to normal' as it agrees debt reduction measures
Posted on 7 Nov 2024
Accell Group, owner of Raleigh, Lapierre, Babboe, and other bike brands, has announced that its parts and accessories inventory levels are back to normal, with bike inventory expected to follow by the end of this year.
The news marks a significant recovery from the post-pandemic challenges faced by the cycling industry, where high inventory levels and excess stock became a major issue after the initial surge in demand faded.
The Dutch cycling giant has also reached an agreement to reduce its debt by €600 million (£500 million), roughly 40% of its total debt. The debt restructuring, supported by major stakeholders, will provide Accell with €235 million (£196 million) in additional cash funding, giving the company a stronger financial foundation moving forward.
Tjeerd Jegen, CEO of Accell Group, said: "This [the measures] provide us with a sustainable financial structure, a strengthened liquidity position, and an ability to invest in the future. The confidence shown by our stakeholders supports the optimistic long-term outlook for the bike market."
Accell Group’s announcement of inventory stabilisation is hoped to be a positive indicator for the broader cycling sector, including other manufacturers and suppliers that have grappled with high stock levels.
This news comes amid a restructuring process at Raleigh’s Nottingham headquarters, which recently resulted in redundancies as part of a broader effort to streamline Accell’s European operations.