The company behind Nottinghamshire-based bikemaker Raleigh, which was founded 139 years ago, has filed to appoint administrators.
Accell UK and Ireland, part of Netherlands-based Accell Group, filed a notice of intention to appoint administrators as the wider group kickstarted insolvency proceedings.
The boss of Accell said it was a “deeply sad and frustrating situation” and that it had “tirelessly explored” every option for the future of the cycling business.
The company bought Raleigh in 2012 for around 100 million US dollars (£74 million), adding to its roster of bike brands throughout Europe including Haibike, Winora and Ghost.
Raleigh was founded in Nottingham in 1887 and was well-known for its Chopper model which featured extended handlebars and is now part of its “retro” range.
It no longer manufactures bikes from Nottingham and its head office has moved to Eastwood, Nottinghamshire, while the company has shifted to selling electric bikes under Accell’s ownership.
Accell went through a restructuring in February, securing additional funding from shareholders and lenders and reducing debts.
Accell said it had since “explored every possible avenue” for its future including discussions with potential buyers, but that it had not been possible to find a solution which means the business can continue operating.
It has therefore initiated insolvency proceedings in the Netherlands.
Accell’s chief executive Jonas Nilsson said: “This is a deeply sad and frustrating situation given all the hard work and everything we have achieved, with the support of shareholders and lenders, to restructure Accell’s operations and finances.
“It is an especially difficult moment for our employees, creditors, customers, suppliers, and partners.
“Every realistic option for the future of the business has been tirelessly explored, and none have resulted in a solution to continue the Group in its current form.
“Our immediate focus is to support an orderly process, provide clarity wherever possible, and work with the relevant court-appointed administrators to preserve viable activities and employment where circumstances allow.”
Read MoreUS asks Philippines to extradite Filipino church leader accused of sex crimes and fraud
Greece’s wildfires force thousands to flee – locals, tourists and pets
Why Russia’s ballistic missiles are increasingly getting through Ukrainian defenses
Diageo boss launches £743m cost-cutting plan to deliver turnaround
Construction industry starts to ‘stabilise’ after steep downturn
Imperial Leather maker PZ Cussons grows profits after cost cuts