Despite launching three new bikes within the last month, Revel has announced that they’re shuttering the brand. According to a letter sent to their dealers, Revel has run out of money to continue operations, and that the business is now in the control of their senior lender. If a buyer isn’t found in short order, it sounds like this will be the end of the line for Revel.
Their remaining inventory is to be sold, and prior-generation models are listed on their site at heavy discounts; it’s not clear what, if any, inventory of their latest bikes is available. Warranty support will cease unless a buyer is found.
We’ve reached out to Revel for comment, but have yet to hear back. We’ll update this post if and when we do. The letter sent to their dealers reads as follows:
There is no easy way to say this. Revel Bikes as it currently stands is closing its doors. Regrettably, though we have tried every avenue possible, we have exhausted all options and run out of funds to support the business. This decision comes at a critical juncture for our capital requirements, and we cannot weather this one alone. Our circumstance is tough, though not unique in the market, with product delays, significant payments coming due and a very soft market. We are on the ledge and we lost our safety net as a result of continued losses with no end in sight.
Consequently, we have transferred responsibility of the business to the Bank, which currently holds the senior debt position. Unfortunately, their position and that of other senior creditors is such that there is unlikely to be any remaining funds for unsecured creditors, with over $8MM in secure credit. We are now in an orderly wind down. What does that mean? We will do our best with a limited number of people to liquidate the remaining assets that Revel has. Beyond that, I honestly do not know. What I do know is that you all deserve better than this, I am sorry that it got this far. I will do whatever I can to support you as this unfolds.
I want to be open to the potential that Revel could be revived to a bigger and brighter future if a new owner comes in while we are going through the wind-down process. This is a talented team with a great brand, someone might want to buy out the debt and see this through. That said, I must be realistic and transparent with all of you – I do not know what will happen from here and we are going to have limited time. Take care of yourself and your teammates, do what is right for you and I will do whatever I can to help.
Thanks for being a part of what we built. The Team at Revel gave it their all—we have you to thank for a lot of this. We hope to cross on the trail soon.
—Ben + Matt + The Revel Bikes Team