Electric Scooter Maker Vectrix Preparing to File for Bankruptcy
Photo: Flickr, CCAll But Essential Staff Laid OffVectrix was kind of the Tesla of the electric scooter world, but it looks like the company is disintegrating. Almost all employees have been laid off to reduce the cash burn rate, and the remaining ones are "preparing for a bankruptcy filing under Delaware law with a view to filing in the next thirty days", which seems like the only option left apart from selling the company or quickly finding an investor. Even the company's website (Vectrix.com) has been turned off.Photo: Flickr, CCKept Underwater by Tough Market Conditions"At its peak, Vectrix had about 200 workers and 225 dealerships worldwide," writes the Providence Journal. The president of Vectrix, President Michael J. Boyle, explains what happened:
Photo: Flickr, CCVectrix Wasn't Profitable YetVectrix never was profitable, but it also was a very young company. It made big investments into product development, and never had time to recoup those before the economy went sour.
"The acceptance of the vehicle in the market has been terrific. What really put the challenge to us was when the financial markets went upside down," said Boyle. "Our basic growth pattern was built around acquiring dealers. When the financial markets totally dried up as soon as the financial crisis hit in October and November, we couldn't continue our dealer development program."
In addition, he said, "Consumer financing dried up completely. These are expensive consumer goods, and without financing it's difficult for the typical consumer to buy one."
Let's hope that they either find an angel investor, or that they are acquired by a more financially stable company that wants to keep selling electric scooters.
Via Providence Journal, Providence Business News, AutobloggreenMore Electric Scooters and MotorcyclesEvolt Bull1 MX: An Electric Motocross from ItalyBig Reveal of Mission One Electric Motorcycle at TED (Video)The 7 Best Electric Scooters: From Prototypes to Production Models