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Devinci Sues City of Montreal for $1.28 Million – Fallout Continues from Bixi Bankruptcy

by John Symon

July 18, 2014 (Montreal, QC) – Quebec-based bicycle manufacturer, Cycles Devinci, filed a lawsuit with Quebec’s Superior Court on Wednesday, claiming $1.28 million from the City of Montreal. This is part of the fallout from the bankruptcy of Bixi’s parent company, Public Bike Share Company (PBSC), on January 20.

Bixi in hot water again. [PJohn Symon

“At this stage you may understand that I can’t comment on the lawsuit,” Devinci president, Félix Gauthier responded to Pedal’s enquiries, referring us instead to his lawyer, Me Sandra Mastrogiuseppe for more details.

Me Mastrogiuseppe at the Montreal law firm of Kugler Kandestin confirmed that she represents Devinci together with CMP Advanced Mechanical Solutions, another supplier to Bixi, in this lawsuit. She expects the hearing to take place in late August.

As Pedal reported earlier, PBSC’s $50 million bankruptcy filing indicated Cycles Devinci as one of the more prominent creditors with some $843,878 owing, although the City of Montreal was by far the largest creditor with $31.2 million owed. Other major creditors include the Banque Nationale: $5.3 million and JFG Logistique (Montréal): $1 million. There were a dozen creditors owed $100,000 or more as indicated by PBSC’s filing.

Since that filing, Montreal has absorbed Bixi operations in that city while Bixi operations elsewhere were bought by businessman Bruno Rodi for $4 million.

Devinci, a manufacturer of aluminum bike frames and bicycles based in Saguenay, QC, made the news in 2008 when it secured the contract to potentially produce thousands of robust, 3-speed Bixi bikes. Orders for PBSC’s programs first in Montreal (QC), and then in London (UK), Boston (MA), Melbourne (Aus), New York (NY), etc  eventually totaled some 38,000 worldwide.

Devinci also sponsors teams such as the Devinci Global Racing downhill MTB team that saw Canadian star Steve Smith make history as he captured the World Cup series overall crown this year. It also sponsors the US-based continental road team 5-hour ENERGY® presented by Kenda, and sponsored the former Canadian-based continental road team Ekoï/Devinci.

Pedal’s previous posting on Bixi creditors here.

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