Brussels-based electric bicycle manufacturer Cowboy has secured short-term financing to keep its production running, the company announced in a press release. A financial deal is also in the works with a French competitor.
Cowboy has been selling connected e-bikes since 2018, but has yet to turn a profit. Like other manufacturers, the company faced production problems due to the rush for parts during the Covid-19 pandemic. Investors provided fresh funding several times, and the strategy was adjusted.
In addition to the short-term financing "to maintain operations and production," the company says it is also working on an agreement with a new financial partner. This is the French Rebirth Group, which has already housed other bicycle brands. This deal, of which the completion date is unclear, should "secure the long-term future."
The difficult financial situation has been compounded by other problems. In May, Cowboy announced a recall because the frame of the C4 ST (Edition MR) model could break. Owners were asked to stop using their bikes. Cowboy reports that its suppliers have delivered the first replacement frames and that a first "recall hub" is operational.
