Cowboy, a Brussels-based manufacturer of e-bikes, has warned in its latest annual report that it may face bankruptcy “in the short term” unless it secures substantial additional funding “in the coming weeks.”
Concerns about Cowboy’s financial health have been mounting for some time. Last month, the company secured short-term financing and announced it was negotiating a partnership with French bike maker Rebirth Group, which already assembles Cowboy’s bikes.
The urgency for new funding is underscored in the annual report, highlighted by Belgian business daily De Tijd on Friday.
Filed with the National Bank on 3 September but dated 4 August, the report states that without a “solid prospect of substantial additional funding in the coming weeks,” the company will face liquidity issues.
Cowboy says it would then be unable to meet payment obligations necessary to sustain operations, potentially forcing it to declare bankruptcy “in the short term.”
The report adds: “There is significant uncertainty creating serious doubts over the continuation of operations, which could result in the company failing to meet its obligations.”
A smart electric bike by Brussels brand Cowboy. Credit: Belga
Cowboy’s financial figures paint a bleak picture. In 2024, revenue fell to €21.7 million, a nearly 36% decrease from €33.7 million in 2023. Operating losses almost matched revenue at €21 million, compared to €19.4 million the previous year. The bottom line showed a net loss of €25.9 million, up from €21.7 million in 2023.
The company described 2024 as a “transitional year” amidst a “still challenging market.” Factors such as intense price competition in Europe, supply chain delays, and the transition to a new assembly partner weighed heavily on results. Cowboy had previously sourced production in Hungary but has since shifted to France.
Looking ahead, Cowboy has developed a strategic plan for 2025–2030. The strategy focuses on innovations, expanding the network of sellers and repairers, improving profit margins, and controlling costs. The company has also enlisted two consultants, including a former CEO of Dutch bicycle group Accell.
The pending deal with Rebirth Group, which already hosts other bike brands, is intended to meet Cowboy’s financing needs for the next 12 months. It includes multiple components: immediate additional funding, converting debt into equity, and issuing a new bond.
Recall issues
The report also sheds light on a recall of Cowboy’s Cruiser ST (Edition MR) model, which features a frame without a horizontal top tube.
A risk of frame breakage prompted a recall in May, targeting bikes produced with frames from Chinese supplier Ming between September 2021 and June 2023. Cowboy switched to a new supplier after this time frame.
Cowboy is negotiating compensation with Ming, who has agreed to provide replacement frames for free. The recall is expected to cost the company €5.6 million, with approximately half already provisioned last year. Costs are calculated based on an 80% response rate from affected users.
As Cowboy faces an uncertain future, the next few weeks are likely to determine whether the once-promising e-bike brand can survive in Europe’s competitive market or if it will be forced to close its doors.
