SAINT-GEORGES, Quebec (BRAIN) — Rocky Mountain announced plans to restructure its finances to avoid declaring bankruptcy but said it will continue operating normally.
Filing for a Companies' Creditors Arrangement Act (CCAA) ensures Rocky Mountain will avoid a business interruption "as much as possible," the brand said. The application with the Superior Court of Quebec Commercial Division offers protection under the CCAA.
"Despite strong demand for its bikes during the pandemic, the company struggled to secure supplies due to shortages and rising costs," according to Rocky Mountain. "Once the pandemic was over, the company had to contend with a sharp drop in selling prices."
Rocky Mountain said as margins tightened, financial pressure increased, leading to Thursday's decision "to become a resilient and successful long-term business."
Rocky Mountain was founded in Vancouver in 1981 by Grayson Bain, Jacob Heilbron, and Sam Mak. It was acquired by Quebec's Procycle, which also sold CCM and Miele bicycles, in 1997. In 2018 Procycle changed its name to Rocky Mountain to focus on that brand. The company's corporate offices remained in Quebec while R&D and other functions remained in Vancouver.
In 2022, Raymond Dutil, the longtime owner and leader of Procycle and Rocky Mountain, appointed Katy Bond as the CEO of Rocky Mountain. Dutil became executive chairman and coach of innovation. Bond left the company last summer and Dutil resumed the CEO role.
In 2023, Rocky Mountain acquired the German bicycle distributor BikeAction. Since 1988, BikeAction has been the brand's distributor in Germany, Austria, the Benelux, Slovakia, the Czech Republic, and Slovenia.
