Livecycle, the Munich-based bicycle service provider, has enjoyed steady growth since its founding in 2016: At its most recent peak, the startup boasted 53 employees, seven locations, and several renowned partners. However, the company has now had to file for insolvency under self-administration.
Cycling is popular, but not everyone who owns a bike can maintain and repair it themselves. Livecycle offers these services like many other workshops, but goes a step further: With its mobile service, the Startup visits its customers' homes. From flat tire repairs and inspections to complete bike builds, cyclists can select a service and book an appointment on the website. Livecyle also offers B2B services such as leasing solutions and ongoing bike fleet management. The startup is also a partner of numerous bike retailers and brands, such as Rose, Fahrrad.de, Sblocs, and Jobrad.
Lack of funding for Livecycle
After an initial round of investment from a business angel and the bicycle wholesaler Messingschlager, the startup was unable to find further investors. Due to this lack of interim financing, which led to a liquidity shortage, Livecycle has now filed for self-administered insolvency proceedings. During the proceedings, which are being managed by restructuring consultants Pluta, business operations will continue. The salaries of the 53 employees will be covered by so-called insolvency benefits paid by the Federal Employment Agency. The Munich-based company also plans to use the self-administration proceedings to find new investors. Andreas Schmidt, Managing Director of Livecycle, explains:
"We're already in talks with the first interested parties. We're pleased because we have a pioneering concept for the mobility requirements of tomorrow. Together with the renovation experts, we're confident we'll find a reliable partner for future projects."
Asset deal sought
"We are convinced by the solution presented by Livecycle and see a realistic chance of achieving a positive result in the short term. Everyone involved is pulling together, and the employees are highly motivated,"
says Pluta lawyer Ivo-Meinert Willrodt, who is leading the process. He had already founded the e-mobility startup Eluminocity advisory support, which ultimately began in early 2019 taken over by Wirelane was. As the 'Business Week' reports, Livecycle is aiming to attract an investor for a so-called asset deal before the actual insolvency proceedings begin. This involves transferring selected assets, such as the trademark rights, while the debts are settled with the old company.
