Rocky Mountain has announced plans to restructure the business under Canada’s Companies’ Creditors Arrangement Act (CCAA) in an effort to avoid bankruptcy. The Quebec-based bike brand pointed to a combination of pandemic-era supply chain disruptions, rising costs, and a steep decline in post-pandemic bike prices as key factors behind its financial troubles.
These challenges have created “unprecedented margin pressures”, Rocky Mountain explained in a statement. Despite the difficulties, the brand continued to emphasise that its operations would continue uninterrupted throughout the process. “We are committed to becoming a resilient and successful long-term business,” the company said.
The CCAA is Canada’s equivalent to Chapter 11 bankruptcy in the US. Both allow companies in financial trouble to restructure while avoiding immediate liquidation. To qualify under the CCAA, however, a company must have liabilities exceeding CAD $5 million. The process is overseen by a court-appointed monitor rather than a trustee, with Ernst & Young stepping into that role for Rocky Mountain. The restructuring will also include a Sales and Investment Solicitation Process (SISP) to explore options for stabilising and strengthening the business, with legal support from Lavery de Billy.
Rocky Mountain’s announcement comes during a turbulent week for bike brands. Earlier this week, GT Bicycles revealed plans to pause new product releases indefinitely, lay off employees, and sell through remaining inventory. Meanwhile, Austrian Pierer Mobility AG, the parent company of KTM motorcycles and multiple e-bike brands, has also begun a restructuring process.
Rocky Mountain was founded in Vancouver in 1981 and grew into an established brand especially in the gravity-oriented mountain biking segment. It was acquired by Quebec-based Procycle in 1997, which rebranded itself as Rocky Mountain in 2018 to focus solely on the brand.
Leadership changes in recent years have marked a period of turbulence for the company. In 2022, longtime owner Raymond Dutil stepped aside to appoint Katy Bond as CEO. Bond’s tenure ended in 2024, with Dutil resuming leadership. Under his leadership, the brand expanded its international footprint by acquiring BikeAction, a German distributor, in 2023.
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