Belgian bus manufacturer Van Hool has applied for creditor protection at the Commercial Court of Mechelen, aiming to ensure the continuation of its operations during negotiations with banks and potential takeover candidates.
Recent weeks have seen signs of financial distress at Van Hool, culminating in a decision by management in mid-March to halt the production and sale of city buses, including electric models. The company cited an inability to compete in the increasingly electric city bus segment due to its cost structure and past management errors.
The creditor protection proceedings are primarily focused on securing financing for a reorganization plan, which the management intends to present by the end of March. While details of the plan have not been officially disclosed, Belgian media reports suggest a strategic shift towards luxury coaches, where Van Hool sees less competition and hopes to achieve better pricing. However, under the proposed plan, luxury coaches would no longer be manufactured in Belgium. Instead, production would be shifted to Van Hool’s existing plant in North Macedonia, where capacity would be freed up by discontinuing city bus production. Trailer production would remain in Belgium.
The move to restructure operations and focus on luxury coaches reflects Van Hool’s efforts to address its financial challenges and realign its business strategy.
