KSR Group files for 'Bankruptcy Protection'
Founded some 25 years ago and considered a leading business in the 'new gen', post 2007 financial crisis landscape of the motorcycle industry in Europe, KSR Group GmbH, a market leader in several key sectors of two-wheeled mobility and a longstanding wholesale company, has filed for a court-supervised restructuring procedure.
Based in Gedersdorf in Austria and owned and operated by brothers Michael and Christian Kirschenhofer, the announcement cited the multiple difficulties of the unstable economic situation in Europe and the significant changes the business has had to undergo over the past year as a result - specifically referencing rising energy prices, high inflation and decreased purchasing power among customers.
The company has currently been selling 60,000 vehicles a year and owns, licences or manages at least 15 motorcycle, scooter and broader powersports vehicle brands (including Brixton, Motron, Lambretta, Malaguti, Italjet, NIU and CFMoto Off-Road). It has been selling through some 2,300 dealers in 60 countries worldwide and offices in Greece, Italy, Spain, Switzerland, Belgium and The Netherlands as well as its head office in Austria.
"We have been working intensively in recent months to meet these conditions," said Michael and Christian Kirschenhofer.
"However, in the interest of a successful and responsible continuation of our business and to preserve jobs, we now see the need to apply for a court-supervised restructuring procedure."
The key reasons for initiating the restructuring procedure include high material costs due to the pandemic and the Ukraine conflict, exchange rate fluctuations, reduced sales due to stronger-than-expected consumer restraint in recent months, and full dealer inventories.
Though it should be noted that for the first half of 2023, industry-wide new unit registrations have been +7 and +10.1% in Austria and Germany respectively.
"After an intensive evaluation phase, we see this decision as unavoidable to guide our company through challenging times and continue our business successfully for the benefit of all stakeholders," said Michael Kirschenhofer.
The company's Smart Products and Mobility business segments will be operated as usual and with sales in Household and Leisure sectors, apparently not all of KSR's divisions (KSR Swiss, KSR Hellas, KSR Thailand, KSR Solution and KH Holding) are affected by the restructuring procedure.
The KSR Group says it will use the coming months to reposition itself for the 2024 season, stating that it is "confident in the future of its business models, existing partnerships, the competence of its employees, and the strength of its brands".
In Austria, making an application for "judicial reorganisation proceedings without self-administration" is a signal that the Group's problems run deep and that it is going to have to work hard if it is to stave off liquidation of its assets and preserve some jobs and trading.
