The e-bike company VanMoof has declared bankruptcy for its Dutch entities. The company once heralded as the “most funded e-bike company in the world,” finds itself in financial turmoil just two years after securing a staggering $128 million investment. With mounting repair costs and declining profits, VanMoof’s future now hangs in the balance.

VanMoof’s declaration of bankruptcy was made public through a mass email sent to its Dutch employees, subsequently shared on the social media platform Reddit. Concurrently, the court of Amsterdam withdrew the suspension of payment proceedings and appointed two trustees to oversee the potential sale of VanMoof’s assets to an interested buyer. This strategic move aims to salvage the company and ensure its continuity.

Despite its remarkable fundraising success, VanMoof has faced ongoing challenges in recent years. Reports suggest that the cost of selling and servicing their e-bikes has exceeded the revenue generated from sales. Dutch financial outlet FD disclosed an alarming €11.9 million ($13.4 million) gross margin loss for VanMoof in 2021, with an additional €8 million ($9 million) spent on repairs and replacements. Notably, the bankruptcy proceedings solely involve VanMoof’s Dutch entities, leaving its international subsidiaries, such as those in the United States and Taiwan, unaffected.

VanMoof’s employees were notified that there are insufficient funds to sustain long-term salary payments. They have been provided with a six-week notice period during which they are expected to continue working and will receive their final payments. Furthermore, part of their responsibilities involves returning bikes currently in service to their respective customers. The company emphasizes the importance of perseverance and collective efforts to secure a bright future for the brand.

To salvage VanMoof and preserve its legacy, the company is actively seeking a potential buyer. The appointment of trustees by the court signifies a commitment to exploring third-party sales as a means to keep VanMoof operational. Finding a suitable buyer within the upcoming weeks is crucial to ensure the company’s continued existence and support of its dedicated workforce.