Zugo Bike LLC filed for Chapter 7 bankruptcy in the United States District Court for the Western District of Texas on February 24.
According to its website, the Austin-based company manufactures and sells electric bikes starting at around $1,800. It is located on the ground floor of the Cole Apartments at 300 S. Lamar Blvd.
According to court filings, Zugo has up to 49 creditors and liabilities ranging from $1 million to $10 million. Its assets are estimated to be between $500,000 and $1 million.
Hunter Bailey, Zugo Bike’s founder and CEO, declined to comment on the bankruptcy. According to the Zugo website, the company was founded in 2019 and manufactures bikes for both commuting and recreation.
In a Chapter 7 bankruptcy filing, a company’s assets are often liquidated to pay back creditors, as opposed to a Chapter 11 case, when a company tries to restructure its debts to remain in business.
Zugo Bike is represented in the Chapter 7 case by attorney Todd Headden of Hayward PLLC.