Diamondback Bicycle Company Inc., a maker of the world’s most popular bicycle, has filed for bankruptcy protection in California after nearly a decade of operations.
The company, which has more than 10,000 employees, has been struggling with a string of lawsuits over the years.
Diamondback had been trying to sell off its bikes and equipment but has been unable to do so.
The company was founded in 2003 and is one of the few companies that have been able to keep a small fleet of the iconic bikes and parts in production.
It has been estimated that nearly one-third of Diamondback bicycles sold in the U.S. have been counterfeit.
The other two-thirds have been made in China.
The U.K. business was hit particularly hard, with the Diamondback brand having been sold at a loss since 2005, when it was valued at $4.6 million.
Diamondbacks sales fell 50 percent in 2014 and fell 20 percent in 2015, according to the company.
Diamonds website, which sells the bike, is now being shut down.
It was also hit hard by a ransomware attack in which the hackers took control of the company’s computers and stole data from thousands of employees.
Diamondback’s CEO, Jim Molloy, said in a statement, “We have been through some difficult times, but this is not an easy time.
We believe that by working with our creditors, our shareholders and our employees we can get through this with dignity and resolve our differences in the best way possible.”
In a statement to the Associated Press, Mollow said, “Diamondback is an iconic brand with a rich heritage.
It is important that we make a decision that protects the brand, the quality of the product and the people who work here.”
In March, the California Department of Finance announced that it was filing for Chapter 11 bankruptcy protection.
Diamondbikes said it was seeking to pay creditors $2.3 million.
The sale of the bike company to the California government is expected to be finalized later this month.