Children’s brand Frog Bikes has entered administration, but is continuing to trade whilst FRP Advisory explores options for its future.
The brand, which experienced significant growth during the Covid pandemic, has since struggled with a wide range of challenges, including Brexit and has been unable to find investors to help it grow.
In a statement published by Cycling Industry News earlier this month (11th Feb), Jerry Lawson, Founder and CEO of Frog Bikes, said: ” Following a period of exceptional growth during the Covid pandemic, Frog Bikes has faced a series of significant and well-documented challenges that have affected many consumer and manufacturing businesses across the UK and Europe.
“Pandemic-era demand led to increased production commitments across the industry, which were later impacted by global supply-chain disruption, rising input and logistics costs, and extended lead times. These pressures were compounded by the effects of Brexit, which added further complexity, cost, and uncertainty to international trade and distribution. Recent increases in the cost of employment have further squeezed the business, whilst consumer confidence and discretionary spending remain low.
“At the same time, tighter financial markets and reduced access to funding made it increasingly difficult for growing manufacturing businesses to secure the requisite working capital required to navigate these challenges.
“Despite this backdrop, Frog Bikes has seen increased demand for its products in recent months. The business remains the clear market leader in premium children’s bikes in the UK and continues to be trusted by parents and loved by children. Frog Bikes has a strong international presence, supplying customers across more than 35 global markets.”
“While Frog Bikes has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of the brand. The search for a suitable partner will continue.
“However, as a precautionary measure, and to provide a period of stability while these options continue to be assessed, Frog Bikes has filed a notice of intention to appoint administrators. This step offers short-term protection to allow the business to explore potential funding and restructuring solutions in an orderly manner.
“These combined factors have placed considerable strain on the business, despite strong brand recognition, loyal customers, improving recent sales performance, and a clear product advantage.
“Frog Bikes is continuing to trade while all options for the future of the company are being explored. The notice provides short-term protection for the business while this process takes place. All parties are committed to securing a positive outcome for the business, its employees and wider stakeholders.
“Frog Bikes’ priority remains supporting its employees, customers, suppliers, and retail partners while working with its advisers to determine the best possible outcome for all stakeholders.”
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