Italian bike manufacturer Bianchi has until late May to renegotiate payments of its debts amid a structural reorganisation after the company accrued huge debts.
According to a report by Escape Collective, Bianchi has entered into 'Composizione Negoziata della Crisi' (CNC) on September 30, a court-backed status in Italy which means the company can delay paying its debts for a limited period and is intended to help businesses navigate financial problems.
This status applies to the brand's holding company, FIVE Bianchi SpA, from September 30 and lasts for four months from the date it was granted, though it an be extended to 240 days, which would give Bianchi until May 28 to renegotiate payments.
According to the Escape report, Bianchi's most recent published accounts, released in late 2024, show that the brand owed €100 million, a large proportion of that to banks.
Should a solution to the company's crisis not be found by May, insolvency proceedings could then follow.
Since 1997 Bianchi has been owned by Swedish company Grimaldi Industri, which saw the company through the cycling boom which accompanied the Covid-19 pandemic. As the market contracted afterwards, however, the company continued to invest, introducing new bikes and opening a new factory outside Milan, which it hoped would build up to 1,000 bikes a day. This investment in a shrinking market saw it move inexorably from profit to loss.
This aggressive policy was accompanied by a flurry of Chief Executive Officers, with four joining the company since 2021. The latest of those is Tony Grimaldi, son of the parent company’s owner Salvatore Grimaldi, who was appointed in early summer as part of the restructuring plan.
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"We were investing a lot in too many areas at the same time. We have been too ambitious in too many segments, and the bicycle industry is so tough," Grimaldi told Escape Collective. "You cannot do everything everywhere, especially when we know that the market is oversupplied.
"It's a structured way to be transparent that you are reorganising and restructuring," Grimaldi said, adding that the company is already in constructive talks with the banks.
Bianchi is one of the world’s oldest bicycle makers, opening for business in Milan in 1885 and with its trademark celeste colour scheme has become one of the sport’s most storied brands, sponsoring WorldTour teams until as recently as this year. However, last week WorldTour team Bahrain Victorious announced an end to their partnership with Bianchi, the team moving to Factor Bikes from next season.
Cyclingnews has approached Bianchi for comment.
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A recent addition to the Cyclingnews staff, Owen Rogers is an experienced journalist, working as a freelancer covering the sport for various magazines and websites for more than 10 years.
Initially concentrating mainly on the women's sport, he has covered hundreds of race days on the ground and interviewed some of the sport's biggest names.
Living near Cambridge in the UK, when he's not working you'll find him either riding his bike or playing drums.
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