The traditional German manufacturer of bicycles and e-bikes, Prophete, has to file for insolvency, according to relevant media reports. Prophete GmbH und Co KG was founded back in 1908.
Prophete must file for insolvency
The traditional manufacturer of bicycles and most recently e-bikes, Prophete, which was founded by Hermann Paul Prophete in Halle an der Saale back in 1908, has to file for insolvency. As reported by various media, including Die Glocke or the Neue Westfälische, the manufacturer headquartered in Rheda-Wiedenbrück is facing the end.
Prophete recently offered its e-bikes already often at drastically reduced prices at discount stores. Especially at Aldi, e-bikes such as the Graveler or other models were to be found quite frequently with lower prices last year.
According to the report, the company filed for insolvency at the Bielefeld District Court before Christmas 2022. Employees were informed of the insolvency proceedings on December 23. However, the reports do not provide any precise background information. It is therefore unclear why Prophete is now on the verge of going out of business.
Whether and in what form it can continue for the approximately 280 employees (as of 2018) is currently still completely open. Attorney Manuel Sack from the law firm Brinkmann und Partner, who has been entrusted with the case as insolvency administrator, is also currently still completely unclear as to the reasons.
The insolvency proceedings also apply to the subsidiary Cycle-Union, which is based in Oldenburg. However, the fact that insolvency does not necessarily mean the end for a company is shown, among other things, by the example of devolo from last year.
The manufacturer of powerline adapters filed for insolvency in February 2022 and then restructured itself. After six months, the reorganization was then completed in October 2022. Whether the Corona pandemic was the decisive factor for Prophete’s insolvency, as it was for devolo, is anyone’s guess.