On October 8, 2024, ChromeBurner Motorgear, the famous online store for motorcycle equipment, filed for bankruptcy after a period of economic and commercial turbulence. How did this once thriving company, with sales of up to 34 million euros, go under so quickly? And what are the prospects for ChromeBurner and its customers? Let's take a look at the causes of this bankruptcy and the first steps towards a new era.
ChromeBurner Motorgear: the reasons for a steep fall
The Covid-19 pandemic was not fatal to all companies. On the contrary, ChromeBurner enjoyed exceptional growth. Demand for motorcycle equipment had exploded, even though consumers were limited in their usual leisure activities. To meet this unprecedented demand, the company invested massively in its inventory.
However, once the pandemic was behind us, reality caught up with the brand: demand fell sharply, exacerbated by inflation and declining purchasing power. The post-Corona downturn was particularly marked in China, a key market for ChromeBurner, where sales collapsed, representing a loss of half its turnover. At the same time, pressure on margins was amplified by a glut of inventories and increased competition, including from suppliers selling directly to consumers at knock-down prices.
Finally, the company also suffered from rising shipping and marketing costs (Google spend up by around 60%), and wage costs due to the rise in the minimum wage. Despite efforts to streamline operations (55% headcount reduction, site closure, halving of inventory), ChromeBurner was unable to reverse the trend.
FC-Moto to the rescue
FC-Moto, a German motorcycle equipment specialist based in Aachen, will play a key role in ChromeBurner's future.
Despite the bankruptcy, ChromeBurner has not disappeared. The brand has been taken over by FC-Moto GmbH und Co. KG, a German specialist in motorcycle equipment. FC-Moto's acquisition relates exclusively to intangible assets, such as the brand and digital platforms. On the other hand, the premises, product inventories and furniture, considered as physical assets, will be sold separately as part of the liquidation.
Under the FC-Moto banner, ChromeBurner will therefore continue to exist as an online store. According to Nicky Verkuijlen, Director of E-Commerce and Retail, the platform should restart quickly, with centralized deliveries from FC-Moto's automated warehouse in Germany. Management will remain based in the Netherlands. A new version of the company in which its founder, Rob Hannink, will not be taking part.
Nicky Verkuijlen Director of ChromeBurner e-commerce and retail:
Under the aegis of FC-Moto GmbH und Co. KG, Germany's leading motorcycle apparel specialist, will continue ChromeBurner as an online store. Several scenarios are currently ready and, in collaboration with the owner of FC-Moto, the ChromeBurner team is currently working on what this new construction will look like. We're working hard to get the site back online as quickly as possible, so we can build for the future and once again provide motorcyclists around the world with helmets, clothing and motorcycle accessories.
Motorcycle equipment: a sector under pressure
ChromeBurner's situation is a wake-up call for the entire motorcycle equipment market. Excess inventory, massive discounting and competition from Asian platforms such as Wish or Temu have weakened company margins. Added to this, consumers are questioning the reliability of specialist sites, particularly in terms of guarantees and refunds in the event of failure.
Under the leadership of FC-Moto, ChromeBurner could be reborn and regain the confidence of motorcyclists. But for now, it remains a reminder that in this competitive market, the race to the bottom is not enough: service, reliability and trust are essential to last. With this in mind, many ChromeBurner customers, having placed orders before the collapse, are asking about refunds for undelivered purchases or warranty follow-up... which could reinforce the appeal of physical stores, where you can see, try on and buy with an immediate guarantee.
