Mountune is seeking investment via a partnership - or even wholesale acquisition of its brand - following the widespread impact of coronavirus. The 40-year-old Essex firm, famed for its engineering expertise on road and track, was due to receive an injection of cash from a new investor earlier this year, but Covid-19 interrupted the deal. It's now back on the market, with hopes for a quick turnaround so it can return to pre-lockdown form.
Company director, Alec Pell-Johnson, told PH that the move "was always planned for this year", following the last investment back in 2015, which came as £3 million in loans and equity to Mountune parent, Revolve Performance. Mountune's big push into the US was part-driven by the investment and the company has also since expanded into the world of VW Group products, under the Mountune52 banner.
But the ongoing effects of coronavirus have taken their toll on even the most innovative of companies, and without a second injection of investment for 2020, the future of Mountune - which saw business on both its road and race sides all but cease during lockdown - faces continuing uncertainty. The situation is especially unfortunate when considered against a background of notable success, including the recent launch of the Focus ST-enhancing m330 - a car that we liked very much.
Mountune is also a serious player in the world of motorsport. Alec explained that its racing arm has returned to building engines and supporting global teams following the pandemic's worst months, but that business remained well down on normal levels, partly thanks to the fact that several racing calendars are significantly shortened, and also that many circuits can't host events with spectators yet. Too many of Mountune's customers have simply not returned.
Given the firm's widespread name recognition and international presence, you'd expect the phone at KPMG - the accounting giant assisting with negotiations - to be ringing off the hook. But these are tough times and the appearance of a press release on the subject suggests that Mountune could use a hand getting the word out. Here's hoping its plea reaches the right ears; we're counting on those little yellow badges to help brighten up the new normal.
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