The announcement came this morning, Friday, July 14, in a statement on the company’s website.
Co Bikes had provided Salisbury residents with electric bikes for just under three years, with bike docking stations at Salisbury railway station and Wiltshire College.
In the statement on its website, Co Bikes managing director Nic Eversett cited “Covid 19, “changes in travel habits, the cost of living crisis” and “vandalism” as reasons for the company’s closure.
“Initially, we were severely affected by the suspension of our services for long periods of time during Covid. Post-Covid, changes in travel habits, exacerbated by the cost-of-living crisis and drop in demand for business travel, have significantly impacted utilisation and revenue.
“These factors have been aggravated by high fuel prices and energy costs, contributing to greatly increased internal costs
“Furthermore, vandalism of the bikes and supply chain issues (especially for e-bikes) have made it impossible for us to keep enough of the fleet on the road to make the business viable.”
The statement continues to explain how the company, based in Exeter, sought to acquire additional funding to help keep it afloat, but to no success.
“During the last few months, the Board and management team have focussed on seeking additional funding to allow us to make the necessary changes to our business model to safeguard its viability.
“Unfortunately, we have been unable to attract the level of funding needed.
“Sadly, this means Co Cars and Co Bikes will cease to operate car and bike services by the 14th of July 2023.”
He admitted that the company will be entering Administration.
“The Board has engaged the services of insolvency experts from Milsted Langdon LLP who have assisted the Board in seeking a purchaser for all or part of the business and who will be managing the process of taking the company, Co Cars Limited, into Administration.
“We expect that this will happen by the end of week commencing 17th July.”