Rocky Mountain Bikes under creditor protection as global bicycle industry reels from effects of pandemic
Former chief product officer for Rocky Mountain Bikes, Alex Cogger, was taken aback when he received a call right before the Christmas holidays informing him that he would be temporarily laid off from the company. With the recent layoffs and dwindling workforce in North Vancouver, where the company conducts design, prototyping, and marketing, Cogger had assumed his job would be safe. However, the layoff call came on the eve of a creditor protection filing in the Quebec Superior Court, revealing the dire financial situation of Rocky Mountain Bikes’ parent company, RAD Industries Inc.
According to court documents filed in Quebec, the company’s financial woes stem from a significant decrease in bicycle demand following the COVID-19 pandemic. RAD Industries’ debt has surged from $48.2 million in the 2022 fiscal year to $68.7 million in 2024, with ongoing operating losses further complicating the situation. The future of the iconic British Columbia mountain biking brand hangs in the balance as the company grapples with financial instability.
The pandemic initially led to a surge in global bicycle demand, but supply chain disruptions soon followed, resulting in bike part shortages for consumers and companies like Rocky Mountain. David Cathcart, the recently laid-off chief commercial officer at Rocky Mountain, highlighted the challenges faced by the company, including long delays in parts delivery and a sudden drop in demand as lockdowns eased.
As detailed in court documents, RAD Industries struggled with excess inventory, heavily discounted bikes, and the need for additional borrowing to stay afloat. Raymond Dutil, the owner of RAD Industries, cited competition from industry giants like Specialized offering discounted bikes as a major blow to the company’s financial health.
In addition to market pressures, Rocky Mountain faced setbacks with a failed e-bike venture that resulted in a $17.8-million loss in 2023. These challenges, combined with the broader economic downturn in the industry, placed Rocky Mountain in a precarious position.
The uncertain future of the North Vancouver facility, where Rocky Mountain has deep roots dating back to its inception in 1981, has left employees and stakeholders anxious about the company’s fate. The lease on the facility is set to expire next month, and remaining staff are in the process of dismantling the office and conducting equipment inventory.
Despite the challenges, Dutil remains committed to keeping the business in Vancouver and finding a new, smaller space for operations. The restructuring process, set to conclude in April, may determine the ownership and future direction of Rocky Mountain Bikes. Cathcart expressed hope that the brand would find a suitable steward to ensure its legacy and continued success in the mountain biking community.
As Rocky Mountain Bikes navigates this tumultuous period, stakeholders and fans alike are hopeful that the brand will weather the storm and emerge stronger than ever. The legacy of Rocky Mountain as a pioneer in freeride mountain biking and a symbol of British Columbia’s outdoor culture remains at the heart of the company’s enduring appeal.
