Angell Electric Bikes Faces Bankruptcy: Insights from the Brand’s Owner

Angell Mobility, a key player in the electric bike sector, has announced a cessation of payment, jeopardizing the jobs of 25 employees. The crisis stems from a significant recall of first-generation bikes due to dangerous frame failures. CEO John Mollanger confirmed that repairs were unfeasible, leading to costly exchanges or refunds. Negotiations with industrial partners have stalled, pushing Angell towards potential liquidation, leaving the future of both the company and its customers uncertain.

A Major Setback for Angell Mobility in the French Electric Bike Market

In a shocking turn of events, Angell Mobility, a prominent name in connected electric bikes founded by Marc Simoncini, has officially declared a cessation of payment. This unfortunate development puts the future of 25 employees at stake, raising concerns about the brand’s viability.

The Origin of Angell’s Troubles

To fully grasp the gravity of this situation, it’s crucial to revisit the events that led to this crisis. Last November, Angell Mobility initiated a significant recall of its first-generation electric bikes due to a serious issue with the bike frames.

John Mollanger, the CEO, explains, “The story begins with the breakage of a bike frame, which resulted in an accident that could have been severe but thankfully wasn’t.” This incident prompted the company to collaborate closely with their partners to identify the technical faults. The frame, made from glued components and aluminum tubes, exhibited a critical failure. “There was a sagging of this frame that disintegrated, so to speak. Everything came apart,” he recalls.

In light of the potential danger, Angell decided to halt operations for roughly 5,000 users, urging them to cease riding immediately.

Financial Fallout and Future Prospects

As the situation escalated, Angell faced the daunting task of either replacing the bikes of affected customers or issuing refunds. Unfortunately, repairing the faulty models was not an option. “It was a structural part that could not be repaired. We preferred to exchange the bike for a second-generation model,” Mollanger stated.

Conversations with SEB, Angell’s industrial partner, began in November, but efforts to reach a resolution faltered. Neither SEB nor their design office, Kickmaker, accepted responsibility for the frame failures, complicating the path forward for Angell Mobility.

“This amounts to several million euros, a double-digit sum,” Mollanger noted, indicating that the financial burden of the recall exceeded their capacity. With every passing moment, the reality of a potential judicial liquidation loomed larger.

What does this mean for the employees? “It’s the hardest part; we are about 25 today. Valuable people who have worked hard and advanced the company,” Mollanger lamented, highlighting the human cost of the unfolding crisis.

As for current customers, Mollanger reassured that “people who have placed orders are up to date; we will honor the last orders.” However, there are concerns for first-generation bike owners regarding the future of connected features. “If the company disappears, it is possible that connected functions cannot be maintained,” he warned.

While judicial liquidations can sometimes lead to buyouts, Mollanger stated that “no discussions about a buyout” are currently underway. “Today, we have a wall in front of us,” he concluded, leaving the future of Angell Mobility uncertain.

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