BDO selected for mountain bikes administration
Two mountain bike manufacturers in West Yorkshire have gone into administration. Orange Mountain Bikes and P Bairstow employed more than 40 staff – with administrators from BDO are working to complete a sale of the business and assets.
Founded in 1988, Orange Mountain Bikes manufactures bikes and sells on to retailers, as well as directly to customers online. Also based in Halifax, P Bairstow meanwhile manufactures high end mountain bike frames for Orange Mountain Bikes, as well as providing precision engineering services to third parties.
The financial performance of the businesses was impacted by Covid-19 restrictions, which caused industry wide supply disruption in 2021 and 2022, increasing costs and specific sector challenges. In the years since, these factors continued to impact the companies' cashflow and financial position, which they have been unable to resolve.
As a result, January 2024 has seen BDO business restructuring partners Mark Thornton and Kerry Bailey appointed as joint administrators of Orange Mountain Bikes and P Bairstow. The move puts 44 employees at risk, with the companies connected by way of common directorship and ownership.
The companies will not be trading during the administration process. The BDO professionals noted that they are hopeful that they can safeguard as many of the firm’s jobs as possible, via a quick a sale of the business and certain assets of Orange Bikes. They will also look to sell the bike frame manufacturing division and certain assets of Bairstow shortly.
BDO’s Thornton commented, "Despite the considerable efforts of management and their teams given sector wide challenges, the financial position of the companies means that they have been unable to continue operating. The joint administrators will seek to maximise realisations for creditors in line with their duties and are hopeful that a sale of the business and certain assets will complete shortly, safeguarding as many jobs as possible."
