Ukraine's oldest bicycle factory is on the brink of bankruptcy
Photo: Veloretro

The Commercial Court of Kharkiv Oblast on Monday, April 8, opened proceedings on the bankruptcy of PJSC Kharkiv Bicycle Plant, as reported on the website of the Supreme Court of Ukraine.

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The reason for the bankruptcy was a statement by an individual entrepreneur, Olena Khomenko, to whom the enterprise owes 700,000 UAH (approximately $17,800).

The Kharkiv Bicycle Plant is an enterprise with a century-long history. It was created in November 1923 based on the evacuated and nationalized bicycle factory of Leitner from Riga, Latvia, during the First World War.

In 1926, the company began to produce the "Ukraine" bicycle model. Other well-known models are "Tourist", "Sputnik", "Progres", and "Sport."

The current company HVZ was founded in 1993 by reorganizing the lease enterprise "Kharkiv Bicycle Plant named after G.I. Petrovsky".

Recently, bicycle production has been carried out under a tolling scheme, with the provider of raw materials being the private industrial and trading company YUSI. It also produces hygiene products, cosmetics, and household chemicals. Both companies have the same beneficiary – Vasyl Savych.

The largest bicycle manufacturers in Ukraine are Ardis (Kyiv) and Velotrade (Kharkiv), created in the 1990s. Velotrade after the start of a full-scale war with Russia reoriented its production to meet the needs of the Ukrainian army.