VanMoof BV, a Dutch electric-bicycle company that saw a surge in demand during Covid lockdowns, has been declared bankrupt after struggling to pay back loans from investors.

An Amsterdam court declared VanMoof’s Dutch legal entities bankrupt on Monday, the firm said in an emailed statement. Appointed trustees are investigating whether the activities of VanMoof can be continued by means of an asset sale to a third party.

Financiers who provided money to the struggling company through crowdfunding were not paid interest, according to local newspaper Het Financieele Dagblad. VanMoof was also forced to close some of its stores last week as dissatisfied customers attempted to return faulty bikes before the firm went out of business.

The company also struggled with higher-than-expected costs for repairs covered by its guarantee scheme, and a lot of money was spent on international growth, according to Dutch news agency ANP.

VanMoof saw orders shoot through the roof during the pandemic as more people opted for its battery-powered bicycles as a means of bypassing traffic.

But ever since the company’s launch in 2009, it also had to contend with a wave of complaints from customers who spoke of faulty parts and breakdowns. VanMoof’s units outside the Netherlands are not affected by the bankruptcy proceedings.