AURORA, Ontario (BRAIN) — BionX Canada, the maker of retrofit e-bike conversion kits, has entered into receivership. Grant Thornton, a business and advisory firm, has taken over management of the company and all business activity has been suspended.
BionX Canada has 80 employees and has temporarily shut down until a buyer is found. The company was formerly part of Magna International, a Canadian automotive supplier, but is now wholly owned by BionX International Corporation. According to court documents, BionX has been engaged in an informal attempt to find a purchaser for the assets or shares of BionX since December of 2017, but has been unable to complete a successful transaction.
Hawley Lambert, which exclusively distributes BionX products in the U.S. and Canada, was alerted of the change two days ago.
“They’ve let all of their employees go. No one knows what’s going to happen. It’s in a holding pattern, so we are in a wait-and-see mode ourselves,” said Patrick McGinnis, vice president commercial at Hawley Lambert North America. “The goal is for them to have a package put together in 10 days where they put offers out there, and in 30 to 90 days, have a partner to sell the company to.”
Hawley Lambert sent a letter to its dealers informing them that everything at BionX is on hold. The company has distributed BionX in Canada for about five years, and in the U.S. since February of 2016.
“Our sales have been strong with them, particularly in the Canadian cities Quebec City and Montreal. The e-bike market came in a little earlier there, more on the European timeline,” McGinnis said. “But we’ve had great success recently on their programs this year and they’ve been a great partner.”
