By VeloNews Interactive
Schwinn/GT Limited, the European division of Schwinn, has gone into administrative receivership, the British equivalent of an American bankruptcy proceeding. According to the British bicycle industry news service, BikeBiz UK, the company may have as many as 11 containers of bikes held up in port because the company lacked the necessary funds to pay for them.
A spokesman for the American division of Schwinn confirmed the European division’s dire financial situation, and added that the move would have no impact on the firm’s North American operations.
However, the willingness to let go of its European market is a sign that the company may not be on secure financial ground. Schwinn has been facing problems on this side of the Atlantic, and reportedly laid off 15 employees at its Boulder, Colorado, headquarters a week ago.
The European bankruptcy confirmed the fears of several large retailers in Great Britain, some of whom had expressed concern about the company’s recent unresponsiveness to orders.