After months of speculation over the e-bike maker’s imminent demise, Cowboy says it now has the financial backing it needs to survive. The Brussels-based maker of boutique e-bikes says it has secured short-term financing to keep the lights on and a commitment from Rebirth Group Holding that should “ensure its long-term future.”
The bicycle company that once swore it wouldn’t become the next VanMoof, recently showed signs of following a similar path to bankruptcy. New e-bike deliveries were taking months, repairs were delayed due to a lack of parts, payments were missed, and debt was mounting, according to media reports and customer complaints.
Cowboy already had a relationship with Rebirth Group prior to signing a term sheet with its new partner. Rebirth is the parent of Re-cycles, the French manufacturer of traditional bicycles that recently took over responsibility for Cowboy’s e-bike assembly operations. The move was supposed to reduce delivery times and improve customer support over time, but it also contributed to some short-term issues during the transition out of Hungary. Today’s announcement makes Rebirth Group doubly vested in Cowboy’s survival.
Cowboy says a costly recall of its Cruiser ST that followed a post-covid bikeaggedon — which continues to rile the e-bike industry — created “the most challenging period in the company’s history.” The recall, according to Cowboy, was caused by an “unapproved change from a supplier.”
With funding secured, replacement frames ready, and the first recall hub up and operational (with more cities to come), Cowboy says that operations and production will gradually return to normal.
“Our priority is to restore normal operations before year-end, working closely with our new partner,” says Cowboy in a press release. “This means delivering outstanding bikes, resolving open cases, and regaining the level of service our customers expect.”
Cowboy says it will provide updated progress in September.