Raleigh, the brand behind some of the most iconic children’s bikes of the 1970s and 1980s, now rests in the hands of administrators after its parent company, the Netherlands-based Accell Group, filed for insolvency proceedings on Wednesday. The brand, which once employed over 8,000 workers in the UK and made a million bikes a year, will now see its future determined in court.
A history of decline and acquisition
Raleigh, founded in 1887, was at one point the world’s largest bike manufacturer. The brand, known for its Grifter and Burner models, was bought by Accell in 2012 for $100m, ending 125 years of British ownership. Production moved from the UK to Hungary in 2012 to take advantage of lower manufacturing costs, but the brand has struggled to regain its former strength.
KKR’s buyout and the cycling boom
In 2022, the US private equity firm KKR bought Accell for €1.4bn, betting on the cycling revival seen across cities worldwide. During the pandemic, demand for bikes surged as more people cycled for exercise and transport. But when the market dipped, manufacturers were left with excess stock, which had to be sold at a discount. KKR’s strategy to cut costs and consolidate operations between brands did not prevent financial collapse.
Failed attempts to find a buyer
In February, KKR passed the business to a group of undisclosed European banks and investors. That group tried to secure a takeover with Singapore-based Dutech Holdings via its subsidiary Tri Star Group, but the talks collapsed. With no viable solution in sight, Accell has now entered administration proceedings.
Jonas Nilsson, chief executive of Accell, said the outcome was a disappointment after years of restructuring and effort to save the business. He described the situation as 'deeply sad and frustrating' for employees, creditors, customers, and partners alike.