December 19, 2024 - (Saint-Georges, Que.) RAD Industries Inc. (the “Company” or “Rocky Mountain”) announced today that it has filed an application with the Superior Court of Québec (Commercial Division) (the “Court”) for Court protection under the Companies’ Creditors Arrangement Act (‘CCAA’) – similar to Chapter 11 in USA – ed.
Despite strong demand for its bikes during the pandemic, the Company struggled to secure supplies due to shortages and rising costs. Once the pandemic was over, the Company had to contend with a sharp drop in selling prices.
As a result, margins have tightened, putting unprecedented financial pressure on the Company. Rocky Mountain has no choice but to initiate restructuring procedures to launch the Sales and Investment Solicitation Process (SISP) to become a resilient and successful long-term business.
By undertaking a restructuring process under the CCAA, the Company will be able to avoid business interruption as much as possible and reduce the resulting impacts of the current situation. The Company will ask the Court to appoint Ernst & Young to act as Monitor under the CCAA. Lavery de Billy is acting as Legal Counsel to the Company.
About Rocky Mountain
Rocky Mountain Bicycles has been designing, developing, and perfecting mountain bikes in and around North Vancouver, BC, since 1981. The diverse playground of the North Shore has offered us the ideal proving grounds for all kinds of riding. Split between our R&D centre in North Vancouver (British Columbia) and our head office in Saint-Georges (Québec), our team has an impressive heritage. We are a Canadian company with a global reach, and our goal is to deliver an exceptional experience. From the moment you throw a leg over one of our bikes, it’s clear that they’re made for people who Love the Ride.
