Assets including fleet of 500 e-bikes up for sale after hire firm collapses

Fri, 24 Feb 2023 | ADMINISTRATION

The business and assets of an e-bike hire company which had operations in
Dundee and Leicester are being marketed for sale after it appointed
liquidators. Ride-on Scotland suffered from a lack of investment, which
resulted in unsustainable working capital and cash flow issues, and has now
appointed FRP Advisory’s Callum Carmichael and Stuart Robb as joint
provisional liquidators.

Ride-on Scotland was founded in 2018 and headquartered in Dundee, where it
traded as Ride-on Dundee, and also operated in Leicester as Ride-on
Leicester. The company had invested in 500 e-bikes, as well as the required
infrastructure to operate this fleet, including software, docking stations,
maintenance systems and support.

The company operated a membership model, offering customers monthly or
annual subscriptions and a specialist app providing 24-hour access to its
fleet. The firm was acquired by Enzen Limited in 2020 and had been awarded
contracts by both Dundee City Council and Leicester City Council.

However, impacted by a lack of investment, the company’s Dundee operations
were suspended in November 2022, followed by the Leicester business earlier
this month. The company has now ceased trading in both cities, with all
employees made redundant.

The joint provisional liquidators will now market the business and its
assets, including the entire e-bike fleet and infrastructure, for sale. In
Ride-on Scotland’s accounts for the year ending March 31 2022, its fixed
assets were valued at £778,446 and current assets at £464,922. However, the
company’s net liabilities at the time amounted to around £2.48 million.

FRP Advisory’s Callum Carmichael said: "Ride-on Scotland had created a
sophisticated and customer-focused e-bike hire business that had attracted
a substantial membership base and growing interest from city councils
across the UK.”

"However, the business has been severely impacted by a shortfall in
investment leading to unsustainable cash flow problems.”

"We will shortly be selling a modern fleet of urban hire e-bikes and
infrastructure that would appeal to an existing operator or an entrepreneur
looking to enter the growing urban e-bike hire market."

<https://www.business-sale.com/news/administration/assets-including-fleet-of-500-ebikes-up-for-sale-after-hire-firm-collapses-224091>

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