Official details on Knolly Bikes’ entry into receivership. Read the statement from Noel Buckley on restructuring, order fulfillment, and the brand's path forward.

A statement from the founder and CEO of Knolly Bikes, Noel Buckley, was issued to the public outlining what is happening at the beloved Canadian MTB brand as it enters a new and unpredictable chapter. The statement outlines what caused the restructuring, what it means for Knolly Bikes owners, and the next steps to put the brand on a sustainable path forward. 

The news is a bummer, but it doesn’t mean Knolly is done for. We’ve seen other brands face similar problems recently and come out the other side, and we can only hope that Knolly follows that same trend and gets things back to the place they need to be.

Read the full press release from Knolly Bikes founder and CEO below. 

I'm going to keep this simple because you deserve that.

The last few years have been the hardest this industry has ever seen, and Knolly has not been immune. But we have been fighting through it: restructuring costs, tightening operations, and doing the difficult work of right-sizing the business to match a new reality. We were making progress.

That progress was cut short. Our bank, RBC, has made the decision to call in our account. This comes at a time when RBC is posting record annual profits- $20.4 billion last fiscal year.  RBC has been consolidating aggressively, and small businesses like ours are feeling the consequences. In an already concentrated Canadian banking landscape, the options for companies in our position are narrowing, not widening.

I'm not here to litigate our bank's priorities. But when a business is doing the hard work of recovery and its lender chooses to write down the account rather than work through it, while posting the most profitable year in Canadian banking history, the community that supports us deserves to know that.

I want to be direct about what this means and what it doesn't.

What it means: We are now in a position where we must evaluate all restructuring options to determine the best path forward. That process is underway. I expect to have more clarity within the coming weeks and will share it as soon as I have it.

What it doesn't mean: This is not an obituary. I started Knolly in a garage because I believed I could build a better bike. I still believe that. The question in front of me right now isn't whether Knolly should exist, it's what Knolly needs to look like to keep existing.  We have been in active development and on the cusp of releasing several new models before these recent events occurred.

Our highest priorities right now are two things: taking care of our staff, and taking care of our active customers. Those are the people who have put their trust in us most directly, and they will be at the centre of every decision we make from here.  At this time we are confident that we won't leave any customers hanging: we have already satisfied the vast majority of open orders and are actively resolving the few that remain.

To our dealers: you have been the backbone of this brand. I'm not going to make promises I can't keep today, but protecting those relationships is central to every conversation we're having.

To our riders: your bikes are not going anywhere. Knolly frames are built to outlast trends, that was always the point. I will keep you informed, honestly and without spin. That's the only way I know how to do this.

More to follow.
Noel Buckley - Founder & CEO, Knolly Bikes