The Munich-based startup Livecycle was forced to file for insolvency proceedings under self-administration at the beginning of the year due to a lack of interim financing. Now, despite the current coronavirus crisis, the company has managed to find an investor solution: The Govecs Group, a manufacturer of electric scooters, is taking over the bicycle service provider's business operations as part of an asset deal.
Livecycle offers various services related to bicycles: In addition to workshops, the startup Livecyle, which operates in several cities, also offers a mobile service that allows cyclists to order a bicycle mechanic to their home. This service includes flat tire repairs, inspections, and the complete assembly of new bikes. Livecyle also offers B2B services such as leasing solutions and bicycle fleet management. The startup is also a partner of bicycle retailers and brands such as Rose, Fahrrad.de, Sblocs, and Jobrad.
After an initial investment round 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 applied for a Insolvency proceedings placed under self-administration.
Successful investor search
The bicycle service provider used the proceedings to reposition itself and has now successfully completed the investor process. In recent months, the restructuring experts from the Pluta law firm supported management in investor discussions and in the restructuring of the company. These measures included process optimizations and a restructuring of the location and sales concept. Business operations continued to operate fully during the proceedings.
"We have held discussions with several interested investors. I am very pleased that our pioneering mobility concept will be continued under the Govecs umbrella,"
says Andreas Schmidt, Managing Director of Livecycle. He will continue to be on board at Govecs.
How Livecycle and Govecs fit together
Govecs develops new e-scooter models for different application areas and target groups. The Munich-based company's primary focus is on sharing platforms and the delivery industry. The company also sells its electric scooters to private customers via its own platform. Livecycle can now help expand its service offering.
"We are pleased about the successful conclusion of the deal. In the medium term, we intend to build the best service network in Germany for electric scooters and bicycles, both stationary and mobile,"
justified Thomas Grübel, CEO of Govecs, the company decision.
"It's also a positive signal in economically challenging times like the ones we're currently experiencing. We continue to work consistently on solutions for urban mobility, because that's our particular strength."
The purchase agreement, effective April 1, 2020, has already been signed. The parties have agreed not to disclose the purchase price. All 30 employees will be retained by the buyer.
