Suspected ransomware attack drives well-known e-bike manufacturer out of business

Hackers have declared the German bicycle and e-bike manufacturer Prophete bankrupt. The “Frankfurter Allgemeine Zeitung” (FAZ) reported on Wednesday that a closure of several weeks after a cyber attack triggered the insolvency filing, citing the information of the responsible insolvency manager.

There are many indications of a ransomware attack, even if this term is not used. At the end of November 2022, the company was attacked by hackers and was paralyzed for several weeks. The resulting losses were economically unmanageable. The attack followed unexpectedly weak business development in fiscal year 2021/22.

And the incident raises more questions:

Also sold in Switzerland

In addition to the core brand for subsidiary Cycle-Union, insolvency proceedings were opened. In 2018, Prophete and Cycle Union had about 450 employees and realized a turnover of 150 million euros.

However, the ongoing insolvency proceedings do not necessarily mean the end of the company. Bicycles and especially e-bikes are a growth market and the manufacturer has maintained close relationships with customers for years.

In addition to Prophete, bicycle brands such as Kreidler, VSF Fahrradmanufaktur and E-Bike-Manufaktur are also sold in Switzerland.

The sales process has been initiated for the operating companies Prophete in Rheda-Wiedenbrück and Cycle Union in Oldenburg and the brands Prophete, E-Bike-Manufaktur, VSF Fahrradmanufaktur and Kreidler. The brands Rabeneick and Swype would no longer be produced.

Sources

(dsc)