Cowboy E-Bikes Avoids Collapse with New Financing Deal
E-bike company Cowboy has secured short-term financing to stabilize its operations after facing what it calls the most challenging period in its history. The company signed a term sheet with Rebirth, a new partner and parent company of ReCycles, the French manufacturer that took over Cowboy’s bike assembly earlier this year. This deal is expected to provide a path toward long-term stability.
The company had been struggling for some time due to industry-wide issues, including post-COVID demand fluctuations and supply chain disruptions. Adding to its troubles, Cowboy was forced to recall some of its Cruiser ST models after reports of frame cracks appearing after 2,500 kilometers (1,553 miles). The issue was traced back to an unauthorized change made by one of its suppliers, further straining the company during an already difficult period.
These challenges led to significant delays for customers and unclear communication from the company. However, with the new financing in place, Cowboy has started receiving replacement frames for the recalled bikes and has opened its first recall center, with more locations planned for the summer.
In an email to customers, Cowboy acknowledged the difficulties but expressed determination to move forward. The company stated that while it is not yet where it wants to be, it remains committed to overcoming its challenges and continuing operations.
The deal with Rebirth marks a crucial step in Cowboy’s recovery, offering hope for the company’s future in the competitive e-bike market.
