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After months of speculation over the e-bike maker\u2019s imminent demise, Cowboy says it now has the financial backing it needs to survive. The Brussels-based maker of boutique e-bikes says it has secured short-term financing to keep the lights on and a commitment from Rebirth Group Holding that should \u201censure its long-term future.\u201d<\/p>\n<\/div>\n
The bicycle company that once swore<\/a> it wouldn\u2019t become the next VanMoof, recently showed signs of following a similar path to bankruptcy. New e-bike deliveries were taking months, repairs were delayed due to a lack of parts, payments were missed, and debt was mounting, according to media<\/a> reports<\/a> and customer complaints.<\/p>\n<\/div>\n Cowboy already had a relationship with Rebirth Group prior to signing a term sheet with its new partner. Rebirth is the parent of Re-cycles<\/a>, the French manufacturer of traditional bicycles that recently took over responsibility<\/a> for Cowboy\u2019s e-bike assembly operations. The move was supposed to reduce delivery times and improve customer support over time, but it also contributed to some short-term issues<\/a> during the transition out of Hungary. Today\u2019s announcement makes Rebirth Group doubly vested in Cowboy\u2019s survival.<\/p>\n<\/div>\n Cowboy says a costly recall of its Cruiser ST<\/a> that followed a post-covid bikeaggedon<\/a> \u2014 which continues to rile the e-bike industry \u2014 created \u201cthe most challenging period in the company\u2019s history.\u201d The recall, according to Cowboy, was caused by an \u201cunapproved change from a supplier.\u201d<\/p>\n<\/div>\n With funding secured, replacement frames ready, and the first recall hub up and operational (with more cities to come), Cowboy says that operations and production will gradually return to normal.<\/p>\n<\/div>\n \u201cOur priority is to restore normal operations before year-end, working closely with our new partner,\u201d says Cowboy in a press release. \u201cThis means delivering outstanding bikes, resolving open cases, and regaining the level of service our customers expect.\u201d<\/p>\n<\/div>\n