UBCO, a Tauranga-based electric motorcycle manufacturer, has entered receivership.
The receivership is being managed by Stephen Keen and David Ruscoe from Grant Thornton, a professional services firm, which has reportedly announced the termination of all employee contracts and the halt of future operations.
“As there is no funding available, the receivers have ceased to trade the business of the companies, and all employees have been terminated with immediate effect,” said Keen and Ruscoe.
According to LinkedIn Insights, UBCO had 82 employees just before the receivership, a decrease from 109 at the same time last year.
UBCO also indicated that they are willing to sell the business and are actively seeking potential buyers. However, no details were provided about the company’s financial status or any existing debts.
Mark Phillips, who served as the Managing Director of UBCO Australia from March 2020 to September 2022, attributed the company’s collapse in part to its reluctance to pursue military sales opportunities.
“Attending a defence trade show led to an opportunity to bid for the supply of electric bikes to the military that we were then told not to pursue because some board members were against putting anything in defence. I felt it was short-sighted but nonetheless disengaged,” Philips said in a statement to the NZ Herald.
“We might not have won the contract, but I saw it as a missed opportunity that highlighted broader issues in the company,” he added.
Phillips expressed concerns that UBCO had expanded too rapidly and extensively. In his view, the company also became an organisation with an excessive management structure.
Just months prior to the receivership announcement, UBCO garnered attention when it reported a major milestone to supply Australia Post with 175 electric bikes. This deal came after an extensive 18-month trial conducted across various states.
During this period, Paul Graham, the chief executive of Australia Post, characterised the partnership as a “pivotal moment for Australia Post.”
UBCO is well-known for its 2X2 all-wheel-drive electric motorbikes, which are engineered to perform exceptionally well in both off-road and on-road environments. The company has successfully sold over 6,000 of its bikes globally.