Following a turbulent and challenging 12 months for the UK cycling industry, 2024 has begun with the ominously troubling news that Orange Bikes has issued a notice of intention to appoint an administrator – just weeks after the popular Halifax-based off-road specialist announced that it was winding down its Orange Factory Racing outfit due to prohibitive costs and the “uncertainty” surrounding the bike industry.
Rooted in mountain biking, while occasionally dabbling in the ‘dark side’ of road and cyclocross bikes, Orange Bikes was founded in 1988 by Lester Noble and Steve Wade, producing the iconic Clockwork hardtail and going on to establish a reputation as trusted, reliable, and successful, boosted by a glittering CV of top mountain bike race wins, including a number of downhill world championships.
In 2015, Wade and Noble sold the company to Ashley Ball, the owner of Halifax-based Bairstows Sheet Metal, Orange’s frame building partner since the company’s foundation.
However, despite the company’s integral part in fostering the UK’s mountain biking culture, on 22 December, according to caseboard.io, Orange Mountain Bikes filed a notice of intention to appoint an administrator, and has since said it is working with a "specialist business rescue advisory firm".
The notice was issued just days after Orange released a statement on 18 December announcing the demise of Orange Factory Racing, the brand’s in-house off-road race team founded in 2020, which they said at the time would enable the company to refocus on “our main goal of creating world-class bikes”.
“Whilst we’re celebrating the successes of the team, we’re also drawing a line under this particular chapter of Orange’s history. Orange Factory Racing won’t return for 2024,” the company said.
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“With so much uncertainty in the bike industry, challenges around the future of the Enduro World Cup Series, and the sheer cost of running a competitive Factory-level team, we’re pressing pause.
“We’ll return when the time is right. But for now, we’re ending on a high and will take a break to focus on our main goal of creating world-class bikes.
“All that said, our passion for racing isn’t going anywhere and neither is Orange Bikes. We’ll continue to support a number of talented athletes around the World – look out for more news on that in the new year.”
Orange Bikes had been approached by road.cc for comment but did not respond. Two days after we published our story on Saturday evening, a statement emerged in subsequent media reports stating that Orange Bikes is working with a "specialist business rescue advisory firm".
Orange Bikes and its associated companies are currently working with specialist business rescue advisory firm J9 Advisory, with a view to restructuring the businesses in order to provide a viable platform to service our customers in the best way possible, safeguarding jobs and ensuring the continuation and strength of the Orange Bikes business moving forwards.
Further details are expected to follow.
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The news of Orange Bikes’ troubles ensures that the issues that have plagued the UK bike industry in recent years appear set to continue into 2024.
In October, Wiggle Chain Reaction Cycles plunged into administration amid “severe liquidity and profitability challenges” for its parent company, with the extent of the money owed by online retail giant to brands across the bike industry laid bare in an administrator’s report published this week.
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And earlier in the year, FLi Distribution ceased trading with immediate effect, as the Huddersfield-based distributor’s director blamed the “red tape and barriers to trade” currently affecting businesses for his company’s demise, which came just two months after Livingston-based distributor 2pure entered administration.
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for a period of time Orange led the way, or were at least one of the leaders, but their stubborn fixation with the single pivot folded metal design has seen them left behind.
The root of Orange's problems is pretty clear to see.
It's a small volume manufacturer with close to 32 models in it's range.
Small volumes and too many models equals too much inventory - which in turn drives inventory finance cost and increases the impact of supply chain problems i.e. too many parts held to avoid supply chain interuption.
Orange has also missed the carbon bandwagon which is clearly the largest part of the premium market.
Orange is an iconic mtb brand so I really hope it survives - but it can't dodge the basic rules of product / manufacturing companies.
As a comparator - Hope Tech - based not too far away from Orange, continues to make both Bikes and accessories in the UK and by all accounts has had a very good few years.
Too many models.
Too many model variants. (basically a 27.5, Mullet and 29 version of everything, plus fork and groupset variants)
Lack of any budget offering.
Premium for UK built stuff.
Late and expensive entry to the eMTB game.
My first 2 MTB's were Oranges so this makes me sad.
Hope dont really make bikes in a comparable way to Orange - they are a component maker with a prototyping sideline and very low volume runs of the Olympic track bike and 2 FS MTB's. They are basically just R&D and test beds.
Not the only company to wind down their Enduro or DH team......there's been a whole raft of them. Plenty of riders, including World champions without a team for 2024.....
And all the while road teams bring in all kinds of new sponsors, etc MTB racing, the poor relation to road racing.......thanks UCI, WB/Discovery.......
I wouldn't exactly say road cycling is flush with cash...things seem to be looking up but it's not an easy ride (pun not intended) for anyone in the industry right now.
Looking forward to armchair brexit experts denouncing these claims from business people in the know, let the bullshit begin. So many facts pointing at the failure of brexit and so many theories, put out by the corrupt gov, to support it. The sooner this failed experiment is put to bed, the better.
Hmmm - that bait is a bit too obvious. Try hiding it in a pint of wine or something.
In all honesty, it's not meant to be hidden. We've gone way beyond being subtle. It's a disaster that's costing every home, hard line brexit muppets are still going to spout the rubbish that they spout, the only thing they've got left is the racism and I despise them.
So Brexit has only pint sized benefits? That about sums up the whole fiasco. And of course English has borrowed the word 'fiasco' from Italian where it's used to denote a complete breakdown in performance; now that really is apt!
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And there we have the perfect representation of a selfish right winger relishing in the suffering of others. What a sad way to live!
Which one? Orange cited the following factors:
In any case, somewhat confusingly the quotes seem to imply it's the racing team that is being wound down, not the bike manufacturing:
Those excerpts are from the announcement on the 18th Dec, which was specifically about the winding down of the EWS team. Today's announcement about the filing for Administrators seems to not be supported by a corporate statement, so there's no indication what they're giving as the reason for being in this situation.
From an outsider's perspective it's most likely the 1-2 combo of Brexit and the COVID boom/bust that has unseated Orange from their relative stability, but we'll have to wait for further details/statements for what exactly has tipped them over the edge while other similar companies continue (maybe struggling) on
Go back and re-read the article. The racing team was shut down, and the whole company appoints and administator (admits bankruptcy) a few weeks later.
How then can the success (increased volumes) of Mason, Fairlight etc. be explained away?
The obvious difference is that both of those have small model ranges and a limited selection of colours. So they have faster inventory turns and less unsold stock lying around costing them money.
First point, I'd never heard of either company, which leads on to the second point, that they are in very different markets at different stages of their life cycles. I would expect relatively new, relatively niche companies to show steady growth (if the products are good). They are founder owned and still full of youthful exuberance, let's see what happens when they're bought out. Can we come back and have the same conversation when they are as large a company as Orange and had a, possibly fateful, change of ownership?
you've not heard of Mason? but you have heard of Orange. I've seen a LOT more Mason's in the last 4 years than orange bikes. But then I ride on the road and not MTB.
I used to frequent an MTB forum and Orange was all the rage, OnOne too. Mason is a never heard of, I tend to stay away from British roadies.
A quick google and view of their website would have told you Mason have very little to do with 'roadies'.
Orange have been around since 80s/early 90s and we're big part of UK MTB scene for a couple of decades. Anyone who came close to MTB at that time will be aware of Orange.
Mason is way younger and no where near the same market penetration (actual sales or brand awareness) outside of adventure/gravel scene, which is in turn much smaller than UK MTB scene.