YT Industries enters restructuring
German consumer-direct mountain bike brand YT Industries has announced it will start a restructuring process as it seeks new investors.
In a YouTube video released Wednesday, founder Markus Flossman said the brand had been hit by the "whiplash" affecting much of the bike industry after COVID-19, with supply problems and unstable demand in the US contributing to its financial troubles. Flossman, who had stepped down as CEO, returned to lead the company through the downturn a year ago.
Following his return, YT tried to clear old inventory and invest in new products to get the company back on its feet, but eventually failed to secure enough funding. As a result, the company has now entered a voluntary restructuring process, which the CEO said will allow it to reorganise its finances and attract new investment.
Flossman said the brand is already in talks with new partners, and noted that the process is a "new chapter" and doesn't affect the day-to-day operations or customers. Nearly half of YT’s revenue comes from North America, where it operates a US HQ in California and a demo centre in Arkansas.
