Mitteldeutsche Fahrradwerke (Mifa), the beleaguered German bicycle manufacturer, has entered formal bankruptcy procedures. A court in Halle, Saxony-Anhalt, ordered starting procedures in appliance of the German bankruptcy code because of the high amount of debts and inability to meet financial liabilities. Back in September, Mifa sought protection under related legislation and asked the court for its bankruptcy to be managed under self-administration.
Shortly afterwards, Thomas Mayer resigned from his job as chief executive. The supervisory board accepted his resignation with regret, but apparently could not see how Mayer could continue to cooperate with the receivers. Mayer has been replaced by Olaf Grothey, a former member of the executive board of Sartorius, a manufacturer of biotechnical and medical equipment. Mayer only took the top job at the country’s largest bikemaker in early October after Mifa called for protection against its creditors.