Ride-on Scotland, an e-bike hire business with fleets and infrastructure in Dundee and Leicester, has been placed in provisional liquidation.
Founded in 2018 and headquartered in Dundee, the company invested in e-bikes, charging and docking stations, software, maintenance systems and support.
It was then acquired outright by Enzen in 2020.
Ride-on offered a membership model with monthly or annual subscriptions which, together with an app, provided 24/7 access. Dundee City Council and Leicester City Council had awarded contracts to the business to operate the services.
The Dundee business suspended operations in November and the Leicester business suspended operations last week.
Due to a lack of investment the business suffered unsustainable working capital and cash flow problems, and as such, the directors had no alternative other than to request the appointment of provisional liquidators.
Ride-on and its operations in Dundee and Leicester have now ceased trading and all nine employees have been made redundant.
Joint provisional liquidators FRP Advisory will now wind up the business and market the business and assets for sale, including a fleet of e-bikes - around 200 in Dundee and 300 in Leicester - along with charging systems, software and maintenance systems.
The firm will also focus on supporting the affected employees with claims to the Redundancy Payments Office and accessing employment support services.
Callum Carmichael, partner with FRP Advisory and joint provisional liquidator, said: “Ride-on Scotland had created a sophisticated and customer-focused e-bike hire business that had attracted a substantial membership base and growing interest from city councils across the UK.
“However, the business has been severely impacted by a shortfall in investment leading to unsustainable cash flow problems.
“Should any creditors and/or customer subscribers wish to file a claim we would ask that they contact FRP Advisory directly.
“We will shortly be selling a modern fleet of urban hire e-bikes and infrastructure that would appeal to an existing operator or an entrepreneur looking to enter the growing urban e-bike hire market - we would ask interested parties to contact Gordon McIntyre in our Glasgow office.”
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